US OPEN: Cardlytics surges 60% after Q4 earnings

• Wall Street indices open lower
• US500 drops below 50-hour moving average
• Cardlytics surges 60% after Q4 earnings

Wall Street indices launched today's trading lower, with S&P 500 dropping 0.5%, Nasdaq moving 0.7% lower, Dow Jones trading flat and small-cap Russell 2000 adding 0.3%.

US industrial production report for February was released at 1:15 pm GMT and showed an unexpected small increase in industrial production as well as bigger-than-expected increase in manufacturing production. However markets have largely ignored the release. Traders will also be offered flash University of Michigan data for March later today (2:00 pm GMT). Report is expected to show a small improvement in the headline index, driven by an uptick in Current Conditions subindex. Short-term inflation expectations are expected to tick higher.

Source: xStation5

S&P 500 futures (US500) climbed to fresh all-time highs yesterday, although it should be said that the bullish price gap yesterday was a result of the contract rollover. Taking a look at US500 chart at H1 interval, we can see that the index is pulling back today. Price slumped from the vicinity of the upper limit of the bullish channel and broke below the 50-hour moving average (green line). Two near-term support levels to watch can be found in the 5,180 pts and 5,153 pts area. However, a key support can be found in the 5,123 pts area and is marked with the lower limit of market geometry as well as lower limit of the bullish channel.

Company News

Adobe (ADBE.US) slumps following release of fiscal-Q1 2024 earnings (calendar December 2023 - February 2024). Company reported 11% YoY jump in revenue to $5.18 billion (exp. $5.14 billion), driven by 12% YoY jump in digital media revenue to $3.82 billion (exp. $3.79 billion). Remaining performance obligation increased 16% YoY to $17.58 billion (exp. $17.14 billion). R&D expenses increased 14% YoY to $939 million (exp. $893 million). Adjusted operating income was 16% YoY higher at $2.47 billion (exp. $2.40 billion), while adjusted EPS came in at $4.48 (exp. $4.38). While fiscal-Q1 results were better-than-expected, the company disappointed with fiscal-Q2 forecast. Adobe expects fiscal-Q2 revenue to reach $5.25-5.30 billion (exp. $5.31 billion) and fiscal-Q2 adjusted EPS to come in at $4.35-4.40 (exp. $4.38).

Fisker (FSR.US) rallies today. Company responded to recent media reports on possible bankruptcy filing, saying it is often working with outside advisers to help manage its business and develop strategies. Fisker also said that it is currently focused on raising capital and engaging in a strategic partnership with a major automaker.

Cardlytics (CDLX.US) rallies today after reporting Q4 2023 earnings. Company reported 8.1% YoY increase in revenue to $89.2 million (exp. $89.5 million) and an 18% YoY increase in average revenue per user to $0.53. Adjusted EBITDA was reported at $9.99 million, up from a $6.14 million loss in Q4 2022 (exp. $9.93 billion). Adjusted EPS of $0.14 was slightly higher than $0.12 expected. Cardlytics said that Q4 2023 capped a transformational year for the company, and it can now focus on best-in-class platform after cost structure was rebalanced.

Analysts' actions

• Rivian (RIVN.US) upgraded to 'overweight' at Piper Sandler. Price target set at $21.00

Cardlytics (CDLX.US) launched today's trading with a massive bullish price gap. Stock is trading around 60% higher on the day and breaks above the 50% retracement of the downward move launched in mid-September 2023. Source: xStation5