US OPEN: US100 resumes its upward momentum; Cisco, Robinhood and Albemarle earnings in background 💡

• US100 gains despite high PPI reading
• Review of quarterly results from companies such as Cisco, Robinhood and Albemarle

Markets in the US open Thursday's cash session in a relatively good mood. As of 10 minutes after the opening, Wall Street's Nasdaq is gaining 0.35%, while the S&P500 is adding 0.1%. Initial declines triggered by a stronger-than-expected rise in producer inflation have been erased and investors are now focusing their attention on companies' quarterly results and Powell's comments on tariffs. 

Current volatility observed on Wall Street. Source: xStation

US100

The Nasdaq-100 index, represented by the US100 contract is trading 0.35% higher today compared to the close of trading yesterday. The index continues its dynamic uptrend all the time, as long as the demand side is able to sustainably hold the 50-day EMA (blue curve) and the 100-day EMA (purple curve).

Source: xStation 5

News

US producer inflation, like yesterday's CPI, rose above expectations in January. The data confirms the Fed's forecast for a jump in inflation in late 2024 and early 2025, but the unraveling core index, may generate more concerns about price dynamics in the coming months. Downward movements in futures observed at the time of the release were quickly reversed, however, potentially signaling that traders have priced in the Fed's hawkish stance for the coming months for good.

Investors' attention today turns to companies' quarterly results and Trump's comments on the bipartisan tariff changes, which may be discussed at a press conference scheduled to take place at 6pm GMT. 

Quarterly results of selected companies in brief (released last night or today before the Wall Street session):

• MGM Resorts (MGM.US): EPS $0.45 (est. $0.30), revenue $4.3 billion (est. $4.27 billion). Strong demand in 2025, BetMGM expected to be profitable.
• Royal Caribbean (RCL.US): $1 billion share buyback and 36% dividend increase.
• Cisco (CSCO.US): EPS $0.94 (est. $0.91), revenue $14 billion (est. $13.87 billion). Increases dividend and share buyback. Raises EPS and revenue forecast for FY25.
• Deere (DE.US): EPS $3.19 (est. $3.11USD); revenue $8.51 billion (-30% y/y, but above est. $7.89 billion). Sales expected to decline in FY25 across all divisions.
• Reddit (RDDT.US): EPS $0.36 (est. $0.25); revenue $427.7 million (+71% y/y, est. $405.5 million). Q1 forecast above estimates.
• Robinhood (HOOD.US): EPS $1.01 (est. $0.52); revenue $1.01 billion (est. $951.8 million). AUC up 88% y/y, user revenue up 102%.
• Equinix (EQIX.US): AFFO/share $7.92 (est. $8.09), revenues $2.261 billion (est. $2.274 billion). Full-year forecast below estimates.
• Albemarle (ALB.US): EPS (-$1.09) (miss, estimate -$0.67); revenue $1.2 billion (estimate $1.34 billion). Plans cost cuts and production changes.