- Wall Street gains slightly in early Wednesday session
- US100 knocks out new local peaks
- Victoria's Secret and Brinker International results in the background
Markets in the US open Wednesday's cash session slightly higher. Minutes after Wall Street opened, the Nasdaq gains 0.12%, while the S&P500 adds 0.03%. The release of CPI data did not cause an overreaction in the market. The slightly lower-than-expected reading failed to convince investors that price pressures in the U.S. remain on a sustained downward trend. Money markets slightly reduced the chances of dovish moves from the Fed (relative to interest rates).
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Open account Try demo Download mobile app Download mobile appCurrent volatility observed on Wall Street. Source: xStation
US100
The Nasdaq index, represented by the US100 contract, is gaining 0.15% today and knocked out local peaks from yesterday's intraday session. The instrument bounced off a key support zone, which was the 200-day exponential moving average (gold curve on the chart). It is the maintenance of this zone in the medium term that could be an important element defining the possible maintenance of a sustained uptrend. In the medium term, on the other hand, an important resistance point may be the zone around 19,250 points (the area of the 50-day EMA, blue curve).
Source: xStation 5
Corporate news
Victoria's Secret (VSCO.US) shares rose 14% after one of the most recognizable lingerie retailers reported preliminary adjusted earnings per share for the second quarter that topped analysts' average estimates. The company also appointed Hillary Super, who was CEO of Rihanna's lingerie brand, as general manager.
The retailer expects net sales to decline 1% to 2% (previous forecast: -1% to -3%), with adjusted EPS of $0.34 to $0.39 (previous forecast: $0.05 to $0.20), well above Wall Street's estimate of $0.16.
Alphabet (GOOGL.US) shares are losing more than 1% after Bloomberg reported that U.S. regulators are considering splitting up the tech giant. People familiar with the matter say it could be primarily about Google Chrome and Android.
Shares of restaurant chain Brinker International (EAT.US) fell 15% after the company released fiscal fourth quarter results that disappointed investors. What's more, the company issued weaker-than-expected full-year earnings guidance. Adjusted EPS of $1.61 per share came in below consensus at $1.72 earnings per share. For fiscal 2025, Brinker expects earnings per share of $4.35 to $4.75, below estimates of $4.78.
ANALYSTS' RECOMMENDATION
- Home Depot Inc (HD.US): Piper Sandler lowered its price target to $387 from $400, after the company lowered its sales and earnings forecasts, citing weak consumer spending.
- Eli Lilly and Co (LLY.US): Berenberg raised its target price to $1,050 from $1,000 after the company released strong second-quarter results and raised its outlook for 2024.
- Starbucks Corp (SBUX.US): Stifel raises its rating to buy from hold and its target price to $110 from $80, based on Brian Niccol's consistent track record of growing brands.
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