- Wall Street indices open lower
- US100 tests near-term support in the 17,935 pts area
- Crypto stocks jump as Bitcoin breaks above $60,000
Wall Street indices launched today's trading lower, following a downbeat trading in Europe and Asia-Pacific earlier today. S&P 500 drops 0.3%, Dow Jones and Nasdaq trade around 0.5% lower, while small-cap Russell 2000 plunges 0.8%.
Crypto-linked stocks are on watch today. Rally on the cryptocurrency market continues, with Bitcoin topping $60,000 mark today for the first time since November 2021. Apart from those, big market moves can also be spotted on shares of companies, who reported earnings - FlyWire, Virgin Galactic, Beyond Meat or eBay.
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Source: xStation5
Nasdaq-100 futures (US100) are testing a key near-term support. Taking a look at US100 chart at H1 interval, we can see that the 17,935 pts support zone has been acting as a floor for the index recently. US100 broke below this area earlier today but has since climbed back above it. Should we see a downside breakout from the 17,935 - 18,015 pts range, index may drop another 80 points in the aftermath (a textbook range of the breakout). However, recent price action suggests that there is a strong bull camp near 17,935 pts and another failed attempt to break below hints that a move towards the upper limit of the range in the 18,015 pts may come next.
Company News
Crypto-linked stocks are trading higher today as a rally on the cryptocurrencies market shows no signs of easing. Bitcoin jumped above $60,000 mark today for the first time since November 2021! Coinbase (COIN.US) gains almost 5%, Cleanspark (CLSK.US) jumps 6.5%, Marathon Digital (MARA.US) opened 6% higher, while MicroStrategy (MSTR.US) rallies 8%.
FlyWire (FLYW.US) surges 20% after reporting Q4 2023 earnings. US payments company reported Q4 revenue at $100.5 million (exp. $88.7 million), adjusted EBITDA at $7.7 million (exp. $3.2 million) as well as EPS of $0.01 (exp. -$0.08). Company expects Q1 2024 revenue to reach $109.9-117.1 million (exp. $115.3 million) and adjusted EBITDA to reach $9-11 million (exp. $13.6 million). Full-year revenue is seen at $501-535 million (exp. $483.1 million) and full-year adjusted EBITDA is expected at $65-76 million (exp. $64 million).
Applied Materials (AMAT.US) is trading lower today after company received requests for information from US government agencies on shipments to Chinese customers. Applied Materials is the US largest supplier of semiconductor manufacturing equipment.
Beyond Meat (BYND.US) is one of the best performing Wall Street stocks at the launch of today's trading, rallying over 50%. Price surge comes in response to the earnings report company released yesterday after close of the US session. We wrote about company's earnings in more detail here.
Coinbase (COIN.US) launched today's trading above $200 per share as Bitcoin jumping to $60,000 provided further support for crypto-linked stocks. Stock is approaching a key resistance zone in the $215 area, marked with local lows from 2021. Source: xStation5
Virgin Galactic (SPCE.US) trades lower after reporting Q4 2023 results yesterday after close of Wall Street session. Company reported Q4 revenue at $2.81 million (exp. $2.98 million) and a negative free cash flow of $113.7 million (exp. -$130.2 million). Research & Development expenses dropped 48% YoY to $53.8 million (exp. $52.3 million) while Selling, General & Administrative expenses declined 35% YoY to $30.8 million (exp. $57.4 million). Net loss was reported at $104 million (exp. -$119.2 million), while loss per share reached $0.26 (exp. -$0.32). Cash position declined 28% YoY to $216.8 million. Virgin Galactic expects Q1 negative free cash flow to reach $125-135 million (exp. -$138.8 million). Full-year revenue is seen at 'about $2 million' significantly below $12.6 million expected.
eBay (EBAY.US) gains after reporting Q4 2023 results. Company reported a 2.1% YoY increase in net revenue to $2.56 billion (exp. $2.51 billion) as well as 2.2% YoY increase in gross merchandise volume to $18.6 billion (exp. $18.2 billion). Number of active buyers dropped 1.5% YoY to 132 million (exp. 130.9 million). Adjusted EPS was reported at $1.07 (exp. $1.03). Company expects Q1 2024 revenue to reach $2.50-2.54 billion and Q1 adjusted EPS to come in at $1.19-1.23.
Analysts' actions
- Cleveland Cliffs (CLF.US) downgraded to 'underperform' at BNPP Exane. Price target set at $16.50
Virgin Galactic (SPCE.US) launched today's trading with a bearish price gap, following a lackluster Q4 earnings report. Stock pulls back from the $1.90 area and breaks below 50-period moving average on H4 interval. Should declines deepen, the support zone to watch can be found in the $1.60 area. Source: xStation5
