- Wall Street opens higher after yesterday's declines
- Market tries to adjust prices post-Fed conference
US markets open higher following yesterday's end-of-session drops. Jerome Powell's more hawkish stance caused declines in risky assets and a rise in the dollar's value. The Fed clearly communicated that a rate cut in March is not on the table, contrary to some speculations.
Despite the hawkish tone, the market reaction is limited. Today, we see that the declines are not continuing, and the dollar's appreciation is somewhat slowing. On one hand, the Fed indicated no initial cuts in March, but on the other, it confirmed a willingness to cut rates this year and begin QT (Quantitative Tightening). Today, on US500 and US100, we observe increases of 0.30-0.40%. The dollar has slowed its gains from the first part of the day and is no longer the strongest currency. Meanwhile, the yields on 10-year Treasury bonds have dropped to even 3.87%.
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US500 retreated from around 5000 points. This psychological barrier will be extremely tough to overcome. After Jerome Powell's conference, the index price dipped below 4900 points and remains in this zone up to the present moment. The first support from below is the 4830-4840 point level.
Source: xStation 5
Company News
AMD (AMD.US) has raised its artificial intelligence-related revenue forecast for this year to $3.5 billion, up from the previous $2 billion estimate. Citi analysts, however, believe AMD is deliberately underestimating and expect the company to generate around $5 billion this year and $8 billion next year from the MI300. AMD CEO Dr. Lisa Su is confident in exceeding the $3.5 billion mark, citing potential upside.
Source: xStation 5
Microsoft (MSFT.US) and Meta (META.US) are reportedly the biggest customers for the MI300, with average selling prices ranging from $10,000 to $15,000. Despite weaker-than-expected guidance causing a sell-off in AMD shares on Wednesday, Citi notes multiple opportunities for AMD to improve gross margins, including growth in its Xilinx business and the MI300 ramp-up.
J.P. Morgan upgraded AT&T (T.US), expecting consistent, long-term growth in its wireless and broadband sectors, particularly due to potential in its broadband segment and ongoing fiber buildout. The firm raised its rating to Overweight from Neutral, with a year-end price target increased to $21 from $18. AT&T.
Source: xStation 5
Altria (MO.US) rose over 1.8% following the announcement of a new $1 billion share buyback plan. The tobacco giant reported Q4 2023 adjusted earnings per share in line with expectations, but saw a 2.2% year-over-year revenue decline, mainly due to a decrease in its smokeable products segment, partly offset by growth in oral tobacco products.
Honeywell (HON.US) fell 4.5% due to a Q4 2023 revenue miss and 2024 sales forecast below expectations. The adjusted profit per share guidance midpoint for 2024 was also lower than estimates. Despite this, CEO Vimal Kapur expressed confidence in Honeywell's positioning for 2024, citing automation, the future of aviation, and energy transition as key growth drivers.
Plug Power (PLUG.US) stock surged over 15% after the company announced the completion of the first fill of a Plug tanker with liquid green hydrogen at its Georgia plant.
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