Summary
- S&P 500 breaks below the 50-session moving average
- Fortinet (FTNT.US) surges on solid earnings, Newell Brands (NWL.US) share price spikes after forecast revision
- NetApp (NTAP.US) leads S&P 500 laggards after downward revision to full-year outlook
The US stocks are trading lower today and are deepening the downward move started yesterday. Technological stocks from the Nasdaq (US100) index and small caps from Russell 2000 (US2000) index are taking the biggest step back. While declines touch almost every sector, there are a few stocks that buck the trend being fuelled by better-than-expected earnings reports.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile app
US500 continues to move lower as the outlook for the global economy became more blurred after recent re-escalation of the US-China trade war. The US index smashed below the 50-session moving average (green line) for the first time since early June and is testing the 38.2% Fibo level of the upward move started on 3rd June. A break lower would pave the way towards the next support - 2880 pts handle at the 50% Fibo level. Source: xStation5
Fortinet (FTNT.US), the US developer of cybersecurity software, is the best performing stock from the S&P 500 index today. The company released earnings report for the second quarter of the year and it was much better than the market expected. Revenue of $521.7 million was 2.1% higher than analysts’ median estimate while net income at $101.6 million was a 13.4% beat. Good performance in the second quarter of the year caused numerous brokers to lift recommendation for the stock. In turn, Fortinet shares gain over 15% in the first hours of Friday’s session, marking the biggest one-day gain since 2013.
S&P 500 members at 3:41 pm BST. Source: Bloomberg
Another US stock that is experiencing double-digit gains today is Newell Brands (NWL.US) , a global manufacturer and distributor of consumer products. Newell Brands revised its full-year forecasts. The company now sees full-year operating cash flow in the $600-800 million range ($300-500 million previously) and revenue in the $2.42-2.47 billion range ($2.23 billion earlier). However, it should be noted that this revision is due to the inclusion of Rubbermaid Commercial Products unit in “continued operations” rather than “discontinued operations”.
On the other side of the S&P 500 quotation board one can find NetApp (NTAP.US). The US cloud company issued a downbeat statement that caused investors to sell the shares. Namely, the company said that it expects full-year revenue to decline 5-10% against the previous year. Earlier the company forecasted a low single-digit increase in sales. The company also said that earnings for the fiscal Q1 of 2020 (ended on 31 July) are likely to be lower than previously expected. To make things worse, the company advised investors not to rely on any past projections of the management.
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
