- Wall Street indices open slightly higher
- US500 trades in 5,085-5,115 pts range
- Earnings report from Travelers, Citizens Financial Group and Abbott Laboratories
Wall Street indices launched today's cash session slightly higher. This comes on the back of an upbeat trading during the European session and in spite of a mixed trading during the Asia-Pacific session. S&P 500, Nasdaq and Dow Jones opened around 0.4-0.5% higher, while small-cap Russell 2000 jumped 0.6% at session launch.
Economic calendar for today is empty, with no noteworthy macro releases from the United States scheduled. However, earnings calendar is getting more busy. Traders have already received Q1 reports from Travelers (TRV.US), Citizens Financial Group (CFG.US) and Abbott Laboratories (ABT.US) today. Earnings from Alcoa (AA.US) and Discover Financials Services (DFS.US) will be published after market close.
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Source: xStation5
S&P 500 futures (US500) seem to have halted a recent downward correction, at least for now. Declines were halted in the 5,085 pts area, marked with previous price reactions. Attempts to launch a recovery move have been halted in the 5,115 pts area, which now acts as the upper limit of the short-term range and is marked with previous price reactions and 50-hour moving average (green line). A break above this resistance may pave the way for an advance to as high as 5,145 pts.
Company News
Travelers (TRV.US) drop after reporting Q1 2024 earnings before opening of the US cash session today. Company reported a 16% YoY increase in revenue to $11.23 billion (exp. $11.19 billion) and an 8.4% YoY increase in net premiums written to $10.18 billion (exp. $10.37 billion). Travelers reported a 286% YoY increase in net investment income of $846 million (exp. $814.3 million) and core EPS of $4.69, up from $4.11 in a year ago period (exp. $4.90). Catastrophe losses surged 33% YoY to $712 million (exp. $475.4 million). Consolidated combined ratio of 93.9% was lower than 95.4% reported a year ago, but higher than 9.32%. Underlying combined ratio of 87.7% was lower than 90.6% reported a year ago and lower than 89.7% expected for this quarter.
Citizens Financial Group (CFG.US) reported a 0.5% QoQ drop in Q1 total deposits to $176.43 billion (exp. $177.35 billion) as well as a 1.9% QoQ drop in Q1 total loans to $143.19 billion (exp. $145 billion). Q1 provisions for credit losses came in at $171 million (exp. $182.4 million). Revenue at $1.96 billion was in-line with market expectations. Net interest income declined 12% YoY to $1.44 billion (exp. $1.33 billion), while non-interest income came in at $514 million (exp. $521 million). Net charge-offs jumped 36% YoY to $181 million (exp. $190 million). Adjusted EPS of $0.79 was slightly higher than $0.75 expected. Citizens Financial expects Q2 net interest income to be down around 2% QoQ.
Abbott Laboratories (ABT.US) reported a 2.2% YoY increase in Q1 net sales to $9.96 billion (exp. $9.89 billion), driven by 14% YoY jump in medical devices sales to $4.45 billion (exp. $4.33 billion). Nutrition unit sales increased 5.1% YoY to $2.07 billion (exp. $2.09 billion) while Diagnostic sales dropped 18% YoY to $2.21 billion (exp. $2.23 billion). Company reported a 10.8% organic sales growth, above $9.5% expected. Adjusted EPS came in at $0.98 (exp. $0.95). Company expects full-year adjusted EPS of $4.55-4.70, up from a previous guidance of $4.50-4.70.
Travelers (TRV.US) launched today's trading lower, following release of a disappointing Q1 results. Stock dropped below the support zone in the $214 area, marked with the 23.6% retracement of the upward move launched in late-October 2023, and reached the lowest level since late-January 2024. Source: xStation5
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