- Wall Street indices trade slightly lower
- US100 makes another test of the 23.6% retracement
- SolarEdge Technologies plunges 30% after profit warning
Wall Street indices launched the final trading session of the month slightly lower. All major US stock market indices are down with small-cap Russell 2000 being top laggard (-0.6%). S&P 500, Dow Jones and Nasdaq trade around 0.1% lower. Solar stocks are trading under pressure after profit warning from SolarEdge TEchnologies triggered a 30% plunge in the share price.
Source: xStation5
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Create account Try a demo Download mobile app Download mobile appNasdaq-100 futures (US100) are struggling to make a bigger move in either direction. The latest upward move on the index was halted slightly above 15,400 pts and another pullback was launched. US100 is now once again testing the support zone ranging above 23.6% retracement of the upward move launched at the beginning of October 2022. A point to note is that a sequence of lower highs can be spotted on the chart and the index is trading in a descending triangle pattern. A drop below the 23.6% retracement, that acts as a lower limit of the triangle pattern, could trigger a deeper decline with a textbook range of the breakout suggesting a possibility of a 1 300 points drop.
Company News
SolarEdge Technologies (SEDG.US) slumped after issuing a profit warning for Q3 2023. Company said that it has experienced substantial unexpected cancellations and pushouts of existing backlog in the second half of third quarter, and that installation rates were much slower at the end of summer and in September. Company expects Q3 2023 revenue to reach $720-730 million, down from previous forecast of $880-920 million, and adjusted operating income of $12-31 million, down from previous forecast of $115-135 million. Slump in SolarEdge shares is dragging lower other solar stocks today.
HP Enterprise (HPE.US) is trading lower today after announcing disappointing earnings forecasts. Company said it expects fiscal-2023 revenue growth to reach 4-6% and adjusted EPS to reach $2.11-2.15 (exp. $2.14). Adjusted earnings in fiscal-2024 are expected in the $1.82-2.02 range, while the market expects $2.15 per share.
Analysts' actions
- Mastercard (MA.US) rated 'buy' at UBS. Price target set at $475.00
- Visa (V.US) rated 'buy' at UBS. Price target set at $295.00
- Sunnova Energy (NOVA.US) rated 'neutral' at BNPP Exane. Price target set at $14.00
- Enphase Energy (ENPH.US) rated 'neutral' at BNPP Exane. Price target set at $131.00
HP Enterprise (HPE.US) launched today's trading lower following a disappointing earnings forecasts. Stock plunged below the 200-session moving average (purple line) and continued to move lower later on. Support zone in the $15.50 area was tested but no break below occurred yet. Source: xStation5
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