US OPEN: Stocks open slightly higher as low volatility continues

• US stock markets tick higher on Wednesday

• Subdued volatility as investors await key jobs report 

• AMC, GameStop, Blackberry gain as meme stock mania continues

US stock markets opened just slightly higher on Wednesday as low volatility on American stock exchanges continues. The bond market seem to have stabilised for now, with the US Treasury 10-year yield hovering around 1.60% in recent days. Lower volatility applies to the equity market too, yet major indices have been consistently pushing higher. Investors look ahead to US jobs data (Friday) - a critical indicator of the US economy’s recovery and a key factor for the Fed’s monetary policy. Some might also be interested in the Fed’s Beige Book which will be released today (7:00 pm BST) - a report gathering information on current economic conditions across the United States. 

US2000 climbed slightly above the 2,300 pts threshold ahead of today’s US cash session. It seems that the path towards late-April local highs is open now and this could be the first target for market bulls. Russell 2000 (US2000) was the strongest among major US indices yesterday and the benchmark remained relatively robust today as well. The area near 2,275 pts should serve as the first support in case of any declines. Source: xStation5

Company News

Ambarella (AMBA.US) rallied over 4% in pre-market after the video components maker’s results and outlook topped Wall Street expectations. The company reported 23 cents of adjusted earnings per share, compared with 4 cents in the year-ago period. Meanwhile, analysts predicted adjusted earnings of 17 cents a share. The firm’s revenue stood at $70.1 million, up from $54.6 million a year ago and above the consensus estimate of $69.50 million. Ambarella offered an upbeat guidance as the firm expects revenue between $74 and $77 million in Q2 while analysts had forecast revenue of $73.6 million. 

Ambarella (AMBA.US) shares jumped on upbeat results and guidance, climbing towards key zone near $105.50 - based on previous price action, this seems to be key-short term resistance for now. Also, it is worth to notice that the area is additionally strengthened by the 100-day moving average. The $93.00 mark remains first important support. Source: xStation5

Zoom Video Communications (ZM.US) posted quarterly earnings of $1.33 per share (33 cents a share above estimates). The video communications platform managed to generate better-than-expected revenue as well ($956 million vs exp. $910.2 million). Zoom said it expects to see Q2 revenue between $985 million and $990 million, beating analysts' expectations of $941 million while EPS are expected to came in at $1.14 to $1.15 (vs exp. $0.94) - an upbeat forecast given the pace of the vaccination programmes in developed countries. 

AMC Entertainment (AMC.US) surged over 20% in pre-market today after its shares gained 22.7% yesterday (despite the fact that Mudrick Capital is said to have sold its entire stake). The movie theater chain is set to launch a shareholder rewards program that will allow retail traders to receive “special offers” and “‘company updates”, including an initial offer of a free large popcorn at any AMC-owned theater in the US. 

The Securities and Exchange Commission said that Tesla’s (TSLA.US) CEO Elon Musk violated a settlement that required his tweets about the firm be preapproved by company lawyers. The agency claims that Musk tweets in 2019 and 2020 hadn’t gone through approval process agreed on by the company.