- Wall Street indices open higher in spite of increase in Middle East tensions
- US100 tries to break above 50- and 200-hour moving averages
- Alcoa gains on new US and UK metal sanctions
Wall Street indices launched new week's trading higher in spite of an increase in Middle East tensions over the weekend. Iran launched a massive drone and missile attack on Israel in a massive escalation of Iran-Israel hostilities. Majority of the drones and missiles were shot down by Israeli air defense and allies, and Iran said that its retaliation for Damacasus consulate strikes is over. However, a strong Israeli response may trigger a war between two regional powers.
S&P 500 trades 0.7% higher, Nasdaq gained 0.4%, small-cap Russell 2000 adds 0.7% and Dow Jones rallies 0.9%. US retail sales report for March, which was released earlier today, turned out to be a big positive surprise, with all major measures of sales increasing more than expected. USD dollar strengthened and while US index futures initially weakened, losses were quickly recovered.
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Source: xStation5
Nasdaq-100 futures (US100) climbed back above the 18,200 pts price zone and are now attempting to break above the 50- and 200-hour moving averages. Taking a look at the chart at H1 interval, we can see that while the pair managed to break above 200-period average (purple line), gains were later halted at the 50-period average (green line). However, should bulls regain control and push the price above those two moving averages, the next resistance zone to watch can be found in the 18,400 area.
Company News
Apple (AAPL.US) drops after Iphone manufacturer saw a 9.6% YoY drop in Q1 2024 sales, losing position of a leader to Samsung. Apple's market share at the end of Q1 2024 stood at 17.3%, while Samsung's market share stood at 20.8%.
Alcoa (AA.US), US producer of aluminium, trades higher after United States and United Kingdom imposed new sanctions on Russian aluminum and other base metals. Russian commodities will not be allowed to trade on London or Chicago exchanges, triggering jump in prices.
According to Electrek report, Elon Musk, CEO of Tesla (TSLA.US), sent memo to employees announcing lay-offs that will affect over 10% of the global workforce.
Charles Schwab (SCHW.US) reported a 7.4% YoY drop in Q1 net revenue to $4.74 billion (exp. $4.72 billion), with net interest revenue dropping 19.4% YoY to $2.23 billion (exp. $2.24 billion), and 20.4% YoY drop in adjusted EPS to $0.74 (exp. $0.73). Total net new assets reached $88.20 billion and were 33% QoQ higher but also 41.2% YoY lower. Company reported 15% QoQ increase in trading volumes and 9% QoQ increase in margin balances.
Analysts' actions
- PVH Corp (PVH.US) upgraded to 'outperform' at Wedbush. Price target set at $128.00
Alcoa (AA.US) gains after new US and UK sanctions on Russian metals went into effect. Stock trades 5% higher on the day, but has not broken above recent highs yet. Source: xStation5
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