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Wall Street indices open higher
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Nasdaq gives back some gains amid Nvidia profit-taking
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Guess rallies over 20% after fiscal-Q2 2024 earnings
Wall Street indices launched today's trading higher, led by tech sector. S&P 500 traded around 0.3% higher at the session launch, Nasdaq moved 0.7% higher and Dow Jones traded was flat. Small-cap Russell 2000 lagged with a 0.3% drop.
Improved sentiment towards the tech sector is a result of solid earnings reported by Nvidia yesterday after the close of the session. Nvidia itself (NVDA.US) launched today's trading with an around-7% bullish price gap but has trimmed part of the gains already. However, this profit-taking on Nvidia started to drag the whole Nasdaq lower following the launch of the US cash session.
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Source: xStation5
Nasdaq-100 (US100) climbed to 2-week highs following Nvidia earnings. However, the index started to give back some gains today after the launch of Wall Street cash session. Taking a look at the US100 chart at H1 interval, we can see that bulls failed to push the index above the 15,400 pts resistance zone. Should declines deepen, a retest of the 15,050 pts zone cannot be ruled out. Nevertheless, technical picture remains somewhat bullish following yesterday's break above the upper limit of the market geometry, that hints a bullish trend reversal.
Company News
Dollar Tree (DLTR.US) is trading lower following the release of better-than-expected fiscal-Q2 2024 earnings (May - July 2023) and a weakish guidance for fiscal-Q3 2023. Company reported an 8.2% YoY jump in net sales, to $7.32 billion (exp. $7.21 billion). Adjusted EPC came in at $0.91, also above market expectations (exp. $0.87). However, gross margin at 29.2% in fiscal-Q2 was over 2 percentage points lower than a year. Dollar Tree expects net sales of $7.3-7.5 billion in fiscal-Q3 2024 (exp. $7.33 billion) and EPS of $0.94-1.04 (exp. $1.29).
Guess (GES.US) rallies at double-digit pace today, following release of fiscal-Q2 2024 results. Company reported a 3.4% YoY jump in Q2 net revenue, to $664.5 million (exp. $640 million). Adjusted EPS at $0.72 turned out to be much higher than $0.39 reported a year ago and $0.40 expected in this quarter. Company now expects full-year sales to grow 2.5-4.0% in fiscal-2024, up from previous guidance of 2.0-4.0%, and adjusted EPS to reach $2.88-3.08, up from previous guidance of $2.60-2.90.
Boeing (BA.US) said that it has detected an issue affecting its 737 MAX jets. Company said that its largest supplier improperly drilled holes in parts that help maintain cabin pressure. The US Federal Aviation Administration said that it is not a safety threat. Nevertheless it threatens Boeing's delivery targets and it is putting some pressure on stock today.
Guess (GES.US) launched today's trading higher and continued to gain at the start of the session. Stock is now up over 20% on the day. Taking a look at the chart we can see that the stock bounced off the lower limit of the recent trading range and made its way above the upper limit. The next resistance zone to watch can be found in the $24.00 area. Source: xStation5
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