US OPEN: US500 tests 4,400 pts, Take-Two Interactive surges 9%

• Wall Street indices trade little changed
• US500 tests 4,400 pts area
• Take-Two Interactive rallies on Bloomberg News report

Wall Street indices launched today's cash session little changed compared to yesterday's closing prices. While US index futures dropped during the overnight trading, those declines were completely erased during the European trading session.

Fed Chair Powell was scheduled to speak at 2:15 pm GMT today. However, Powell was only scheduled to deliver opening remarks at Fed Research Conference and did not touch on the topic of outlook for the Fed monetary policy. As such, his speech turned out to be a non-event for the markets.

Source: xStation5

S&P 500 futures (US500) are trading higher today and are attempting to break above the 4,400 pts mark. The index is trying to take out yesterday's highs and move to the levels not seen since mid-October 2023. Should we see a clear break above the 4,400 pts swing area, the next resistance to watch can be found ranging below the 61.8% retracement of the downward move launched in late-July 2023 (4,440 pts area).

Company News

Array (ARRY.US) is trading lower following a guidance cut. Company reported Q3 revenue at $350.4 million (exp. $374.1 million) and adjusted EBITDA at $57.4 million (exp. $46.8 million). Adjusted EPS came in at $0.21 and was better than $0.11 expected. Array lowered its full-year revenue guidance from $1.65-1.73 billion to $1.53-1.58 billion (exp. $1.7 billion) while full-year Ebitda guidance range was slightly narrow from $280-295 million to $280-290 million.

Ebay (EBAY.US) drops after reporting Q3 2023 earnings. Company reported a 5% YoY increase in net revenue, to $2.5 billion (exp. $2.5 billion) and adjusted EPS at $1.03 (exp. $1.00). Gross merchandise volume increased 1.6% YoY to $18.0 billion (exp. $17.77 billion) while the number of active buyers dropped 2.2% YoY to 132 million (exp. 131.3 million). Ebay expects Q4 revenue at $2.47-2.53 billion (exp. $2.6 billion) and adjusted EPS at $1.00-1.05 (exp. $1.05). Full-year net revenue is seen at $10.02-10.08 billion (exp. $10.15 billion).

Array (ARRY.US) slumps over 10% following a full-year revenue guidance cut. Stock dropped below the lower limit of the trading range and trades at the lowest level since late-October 2022. Textbook range of the downside breakout suggests a possibility of a drop to as low as $9.60. Source: xStation5

Take-Two Interactive (TTWO.US) gains after Bloomberg News reported that the next game from the company's major franchise - Grand Theft Auto - may be announced as soon as this week. Take-Two is scheduled to report Q3 earnings tomorrow after close of the session.

Warner Bros Discovery (WBD.US) is trading lower after reporting Q3 earnings. Company reported a 1.6% YoY jump in revenue, to $9.98 billion (exp. $9.98 billion), with advertising revenue reaching $1.80 billion (exp. $1.79 billion). Total subscribers came in at 95.1 million (exp. 95.5 million). Adjusted EBITDA came in at $2.97 billion (exp. $2.89 billion). Company reported a $0.17 loss per share, deeper than the $0.08 loss per share expected. Warner Bros said that 'Barbie' was the highest grossing film in its history with a global box office of almost $1.5  billion.

Analysts' actions

• Microchip (MCHP.US) upgraded to "buy' at Citi. Price target set at $100
• Quanta Services (PWR.US) upgraded to "buy" at Goldman Sachs. Price target set at $211.00
• NXP Semiconductors (NXPI.US) downgraded to "sell" at Citi. Price target set at $150.00

Take-Two Interactive (TTWO.US) launched today's trading with a big bullish price gap. Bloomberg News report on the new GTA game is driving the share price higher today. Stock jumped above the upper limit of a recent short-term trading range in the $144.25 area and a textbook range of the breakout suggests possibility of a move as high as $155.00. Source: xStation5