US100 gains 1,1%. AMD gains 8% after unveiling new AI chip 📈

• Wall Street opens higher. US100 leads gains
• Claims in line with expectations, weaker Challenger report
• Rises in AMD (AMD.US) and Alphabet (GOOGL.US) shares lead Nasdaq to 16,000 points
• Dollar General (DG.US) gains after better-than-expected Q3 report.
• Panic on Nikola (NKLA.US) shares, MicroAlgo (MLGO.US) erases euphoric gains

As the U.S. unemployment claims reading came in line with expectations (220K vs. 218K previously), and the Challenger report indicated a 40.8% y/y decline vs. 8.8% increases previously (45.51K vs. 36.84K previously)-the market reassured itself that the labor market (and economy) is cooling off, but at a controlled pace, allowing a 'soft landing' to be achieved. A commentary on the Challenger report indicated that employers are not eager to resume hiring quickly, and analysts expect further layoffs in the new year. November job cuts announced by U.S. employers were up 24% from October. Among companies, Alphabet and AMD are driving the increases today, with both companies gaining on AI-related news (a new AI model, Gemini from Google, and the unveiling of AI chips from AMD that compete with Nvidia). Both Microsoft and Meta Platforms have indicated that they are ready to buy chips from AMD AI as alternatives to Nvidia.

Source: xStation5

US100 chart (H4, H1)

Looking at the US100, we see that despite the past 1% rally, the sell side prevails on the H1 volume bars. Nonetheless, the benchmark managed to rise above the SMA200, SMA100 and SMA50 averages and is trying to extend the rally in 16,000 points zone.

In a correction scenario, the 38.2 level of the retracement of the upward impulse from the end of October between 15,400 and 15,500 points may prove important. That's also where we see the SMA200 average.

Company news and analysts' recommendation changes

• AMD (AMD.US) is gaining nearly 8% after major tech companies expressed interest in AI 'MI300X' chips. The market is pricing in a higher share of AMD's AI market in the near term, in 2024 and comments from Microsoft and Alphabet suggest that the companies have not signed 'exclusive' contracts with Nvidia (NVDA.US). AMD's rival company, and still the leading player in the AI market, is losing nearly 0.8% today
• Alphabet (GOOGL.US) gains a day after Google released Gemini described by the company as "the largest and most powerful artificial intelligence model the company has ever built
• Braze (BRZE.US) gains as the company raised forecasts and beat Q3 revenue estimates
• Coverage of shares of dating app company Bumble (BMBL.US) was initiated with an 'outperform' rating at Wells Fargo, the bank stressed the importance of higher app traffic
• C3.ai (AI.US) is losing nearly 12% after the AI and data analytics programming company showed second-quarter revenue that came in below analysts' estimates. It also published an operating loss forecast that disappointed expectations.
• Cerevel Therapeutics (CERE.US) gains 16% after AbbVie agreed to acquire the biotech company for about $8.7 billion.
• ChargePoint Holdings (CHPT.US) shares lose 5% after the electric vehicle charging company reported disappointing third quarter results. Analysts continued to see an unfavorable growth environment, and the B.Riley fund downgraded its shares.
• Chewy (CHWY.US) is losing nearly 10% after the pet supplies retailer lowered its full-year net sales forecast. Analysts found the online retailer's results disappointing.
• ArkInvest sold shares of Coinbase (COIN.US) UiPath (UI.US), increased position on Palantir (PLTR.US)
• Goldman Sachs raises recommendation on Qiagen (QIA.US), cuts outlook on Danaher (DHR.US)

Advanced Micro Devices (AMD.US) shares gain nearly 8% after AI chip presentation and positive company comments signaling demand for new semiconductors. The MACD indicates potential profit-taking and a possible correction. On the other hand, if the 1:1 upward structure were to repeat, a rally even in the vicinity of $150 per share is not excluded. Source: xStation5