US OPEN: Super Micro Computer jumps 15% on S&P 500 inclusion

• Wall Street indices open a touch lower
• US2000 tests highs from late-January 2023
• Super Micro Computer jumps on S&P 500 inclusion
• Macy's jumps on a boosted takeover offer

Wall Street indices launched new week's trading slightly lower. S&P 500 dropped around 0.2% at session launch, Dow Jones traded almost 0.4% lower and Nasdaq declined 0.1%. Small-cap Russell 2000 was the outperformer with an around-0.7% gain at launch. Super Micro Computer and Deckers Outdoor jump on S&P 500 inclusion, while Macy's rallies on a boosted takeover offer.

Source: xStation5

Small-cap Russell 2000 (US2000) has been one of the worst performing major Wall Street indices as of late. While S&P 500, Nasdaq-100 and Dow Jones trade at fresh record highs, Russell around 15% below all-time highs. The index is, however, looking towards a break above the late-December 2023 highs.

Taking a look at US2000 chart at D1 interval, we can see that the index has fully recovered from downward correction that occurred in the first half of January 2024. Index approached the 2,100 pts resistance zone, marked with late-January 2024 high, as well as price reactions from 2021 and 2022. A break above the 2,100 pts area would push the index to levels not seen since late-March 2022. In such a scenario, the next level to watch for buyers will be the 2,170 pts swing area.

Company News

European Union imposed a €1.8 billion fine, or around $2 billion, on Apple (AAPL.US) for abusing its market position in the music-streaming business to a detriment of its rivals, like for example Spotify Technologies (SPOT.US). Apart from the fine, European Union ordered Apple to stop preventing other music-streaming apps from informing users about cheaper alternatives available outside of Apple's family of apps. Apple announced that it will appeal the decision

Super Micro Computer (SMCI.US) and Deckers Outdoor (DECK.US) trade higher today after S&P Dow Jones Indices announced on Friday that two stocks will join S&P 500 index, effective on March 18, 2024. The two will replace Whirlpool (WHR.US) and Zions Bancorp (ZION.US) in the index.

Macy's (M.US) rallies today after Arkhouse Management and Brigade Capital Management increase their offer for shares of the US department store company. A new offer is $24 per share, up from the previous offer of $21 per share, which was rejected by Macy's back in January. New price represents an around 33% premium above Macy's closing price on Friday.

JetBlue Airways (JBLU.US) announced that it has agreed with Spirit Airlines (SAVE.US) to terminate their July 2022 merger agreement. JetBlue will pay $69 million to Spirit for the termination. Decision to terminate the merger came amid inability to receive necessary legal and regulatory approvals.

Analysts' actions

• Lyft (LYFT.US) upgraded to 'outperform' at RBC Capital Markets. Price target set at $23.00
• DoorDash (DASH.US) upgraded to 'outperform' at RBC Capital Markets. Price target set at $175.00
• International Game Technology (IGT.US) downgraded to 'hold' at Stifel. Price target set at $30.00
• Toast (TOST.US) rated 'outperform' at Evercore. Price target set at $32.00
• NetApp (NTAP.US) upgraded to 'buy' at Argus Research. Price target set at $130.00
• FuboTV (FUBO.US) upgraded to 'buy' at Seaport Global Securities. Price target set at $2.50
• Dutch Bros (BROS.US) upgraded to 'overweight' at Piper Sandler. Price target set at $37.00

Macy's (M.US) surges today after receiving a boosted takeover offer from Arkhouse Management and Brigade Capital Management. Stock launched today's trading with an around-14% bullish price gap and is trading above $20 resistance zone. The next major resistance to watch can be found in the $21.40 area. Source: xStation5