US Open: Indices hit new records amid earnings season 📌

• US main indices gain at session start
• Donald Trump approaches Republican presidential nomination

US indices are gaining at the start of the session, with technology companies leading the rise again. The increases are driven by better quarterly reports from companies like Netflix and in anticipation of reports from Tesla and IBM after the session closes. The US500 is up 0.40% to 4920 points and the US100 even more, by 0.80% to 17700 points. The stock market gains are supported by a weakening dollar and falling yields on US Treasury bonds. Today, the dollar (USD) is the weakest currency in the G10. At the time of publication, the euro is trading at 1.0929 USD.

• Donald Trump is nearing the Republican presidential nomination after a decisive victory in the New Hampshire primary, following his earlier win in the Iowa caucuses. This success has effectively eliminated his main rival, Florida Governor Ron DeSantis, from the race and positioned him for a likely rematch with President Joe Biden. Trump's only remaining challenger, former UN ambassador Nikki Haley, finished second with 43.5% of the GOP primary votes compared to Trump's 55%.

US500

The US500 (SP500) index marks its fifth consecutive day of gains, achieving nearly 3.20% increase. Bulls have a clear path ahead, setting new records. In case of a market correction, it's important to closely watch the 4800 - 4830 points and 4700 - 4730 points levels, which were the upper and lower limits of the consolidation channel over the last month.

Source: xStation 5

Company News:

Intuitive Surgical (SRG.US) gains 1.3% at the market open following the submission of its application for the next-generation robotic surgery platform, da Vinci 5, to US regulators. The company reported a strong fourth-quarter performance, with revenue reaching $1.93 billion, a 17% increase year-over-year, surpassing the $1.89 billion estimate. The company also saw a 21% increase in worldwide procedure growth and placed 415 surgical systems, marking a 12% year-over-year increase.

Kimberly-Clark (KMB.US) stock fell 4.6% after reporting fourth-quarter earnings that slightly missed estimates, following a 2.1% gain on Tuesday influenced by Procter & Gamble's strong quarterly report. The company's adjusted EPS was $1.51, just below the $1.53 estimate, and net sales were $4.97 billion, slightly under the $4.99 billion forecast. The miss in EPS was attributed to non-operating items like foreign exchange and tax. For 2024, Kimberly-Clark forecasts a low-to-mid single digit increase in organic net sales and high single-digit constant-currency adjusted EPS growth, despite the negative impacts from currency translation and the Brazil Tissue divestiture.

Elevance Health (ELV.US) gains 3.2% after the health insurer's 2024 adjusted earnings per share guidance slightly exceeded average analyst expectations. For 2024, the company forecasts an adjusted EPS above $37.10, marginally beating the $37.05 Bloomberg Consensus estimate. Fourth-quarter results showed an adjusted EPS of $5.62 against a $5.59 estimate, operating revenue of $42.45 billion surpassing the $42.1 billion estimate, and a benefit expense ratio of 89.2%, better than the 89.7% estimate. Additionally, the company announced a 10.1% increase in its quarterly health dividend to $1.63 per share.

Progressive (PGR.US) stock gains 5.3% after the insurance company reported fourth-quarter earnings per share that surpassed the average analyst estimate. The company's EPS was $3.37, significantly higher than the Bloomberg Consensus estimate of $2.61. Progressive also reported a substantial year-over-year growth in net premiums, with earned premiums at $15.77 billion (a 22% increase) and written premiums at $15.13 billion (a 21% increase), both exceeding estimates.

Textron (TXT.US) stock rose 6.46% after the helicopter and Cessna aircraft manufacturer reported a fourth-quarter profit that exceeded expectations, largely driven by strong performance in its Bell division. Bell's revenue increased by $255 million from the previous year to $1.1 billion, with profits rising $55 million to $118 million. The division also saw an increase in commercial helicopter deliveries, up to 91 from 71 last year. Textron also provided a positive outlook for 2024, with its profit forecast surpassing analyst estimates. The fourth-quarter results showed an adjusted EPS of $1.60, beating the Bloomberg Consensus estimate of $1.53.