- Wall Street opens lower after hawkish NFP data
- US jobs report showed a higher-than-expected employment and wage growth
- GameStop drops on plan to issue 75 million shares
Wall Street indices launched today's trading lower, following release of hawkish US jobs data earlier today. S&P opened 0.3% lower, Dow Jones declined 0.2%, Nasdaq moved 0.4% down and Russell 2000 traded over 1% lower at session launch.
US NFP report for May turned out to be surprisingly hawkish. Employment increase more-than-expected and wage growth unexpectedly accelerated from 3.9 to 4.1%. Such a set of data makes it more likely for the Fed to send a dovish message when it meets next week, and instead stick to its previous messaging. Money markets saw an around 70% chance of Fed cutting rates in September prior to the release, but those odds have now dropped to around 50%.
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S&P 500 futures (US500) took a hit following release of US NFP report for May. However, sell-off was halted in the 5,335 pts area and the index began to recover losses. An attempt to climb back above the 5,350 pts area can be spotted at press time. Should bulls succeed, the next potential resistance to watch can be found in the 5,370 pts area. Source: xStation5
Company News
GameStop (GME.US) continues to draw attention. Stock was rallying by almost 40% in premarket today, but has erased those gains after company release Q1 earnings report. Report showed a 29% YoY drop in net sales to $882 million (exp. $995 million) and adjusted loss per share of $0.12 (exp. -$0.09). However, more importantly, the company said that it will issue up to 75 million new shares to seize opportunity presented by recent share price rally.
Vail Resorts (MTN.US) launched today's trading lower, after ski resort operator reported fiscal-Q3 2024 results. Company reported a 3.6% YoY increase in net revenue to $1.28 billion (exp. $1.29 billion) and EBITDA of $653.3 million (exp. $652.8 million). EPS improved from $8.18 a year ago to $9.54 now (exp. $10.01). Total skier visits dropped 3.2% YoY to 8.94 million (exp. 9.08 million), while effective ticket price increased 8.5% YoY to $83.38 (exp. $82.28). Company expects full-year fiscal-2024 EBITDA of $825-845 million, down from previous $847-889 million forecast, and net income of $224-256 million, down from previous forecast of $270-325 million.
DocuSign (DOCU.US) trades lower after reporting fiscal-Q1 2025 results. Company reported 7.3% YoY increase in revenue to $709.6 million (exp. $706.3 million) and drop in adjusted gross margin from 83% a year ago to 82% now (exp. 81.7%). Adjusted EPS of $0.82 turned out to be higher than $0.72 reported a year ago and $0.79 expected by analysts. Billings at $709.5 million were 5.1% YoY (exp. $690.1 million). Company also announced an increase of up to $1 billion in buyback programme. However, forecasts disappointed somewhat. DocuSign expects fiscal-Q2 billing at $715-725 million (exp. $728 million) while full-year billings are seen at $2.98-3.03 billion, slightly higher than previous forecast of $2.970-3.024 billion.
Analysts' actions
- 3M (MMM.US) upgraded to 'buy' at Bank of America. Price target set at $120.00
Vail Resorts (MTN.US) plunged over 10% after release of disappointing earnings report. Stock dropped to the lowest level since June 2024. Source: xStation5
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