US OPEN: Peloton, Advance Auto Parts and Snowflake results in focus

• Wall Street in mixed mood at the start of the session 
• US100 remains above an important resistance point
• Peloton results, Advance Auto Parts and Snowflake in the background

US markets open Thursday's cash session in mixed sentiment. An hour after the opening, Wall Street's Nasdaq is holding near yesterday's closing zones, while the S&P500 is adding 0.05%. The leader of the declines, however, is now the Russell 2000, which is losing 0.6%. Investor attention is now focused on speeches by Fed bankers, as well as PMI data. Tomorrow, attention will turn to Powell's speech at the Jackson Hole symposium.

Current volatility observed on Wall Street. Source: xStation 

US100

The Nasdaq-100 index, represented by the US100 contract is trading today near yesterday's closing levels. The instrument broke out above the key resistance zone, which was the 50-day exponential moving average (blue curve on the chart) and the 19,740-point zone, where the previous support ran, which was then set by the main limit of the downtrend. It is the maintenance of this zone in the medium term that could be an important element defining the possible maintenance of a sustained uptrend. In the medium term, on the other hand, an important resistance point may be the psychological zone near 20,000 points.

Source: xStation 5

Corporate news

JPMorgan is raising its target price for Synopsys (SNPS.US) shares to $685 from $655, after the company reported solid quarterly results and reaffirmed full-year revenue guidance. 

Peloton (PTON.US) shares are up 9% early in the session after the company reported sales growth for the first time in nine quarters. The forecasts themselves for the first quarter of the fiscal year and full-year 2025, however, come out mixed. 

2025 Y/Y FORECAST

Projected revenue of $2.4 billion to $2.5 billion, $2.69 billion expected 

Adjusted EBITDA of $200 million to $250 million, expected $113.5 million

Expects 2.68 million to 2.75 million connected fitness subscribers, expected 3.01 million

GUIDELINES FOR Q1

Projected revenue $560 million to $580 million, expected $602.5 million

Adjusted EBITDA $50 million to $60 million, expected $49.7 million

Number of fitness service subscribers 2.88 million to 2.89 million, expected 2.98 million

Gross margin at 50%.

Q4 RESULTS

Revenue $643.6 million, +0.2% y/y, expected $630.1 million

Fitness services revenue $212.1 million, -3.8% y/y, $197.3 million expected

Subscription revenue $431.4 million, +2.3% y/y, expected $431.2 million

Connected fitness subscribers 2.98 million, -0.5% y/y, expected 3.02 million

615,000 paid digital subscribers, -26% y/y, 606,687 expected

Adjusted EBITDA $70.3 million vs. loss of $34.7 million y/y, expected $53.2 million

Loss per share $8.00

Cash flow from operations $32.7 million vs. negative $55.4 million y/y, expected $17.9 million

Advance Auto Parts (AAP.US) shares fell 14% after the parts supplier released disappointing second-quarter results. The company reported earnings of 75 cents per share, below consensus of 93 cents earnings per share. 

Snowflake (SNOW.US) shares are losing more than 12%, despite the software company exceeding Wall Street's earnings and revenue expectations for the latest quarter and raising its full-year product revenue guidance. The company reported product revenue of $829.3 million, beating estimates of $808.4 million. On an adjusted basis, the company earned 18 cents per share, compared with estimates of 16 cents.

The company now expects product revenues of $3.36 billion in fiscal 2025, up from an earlier forecast of $3.30 billion. The company also authorized an additional buyback of $2.5 billion worth of the company's shares by March 2027.

ANALYSTS' RECOMMENDATION

- Target Corp (TGT.US): Jefferies is raising its target price to $195 from $190, following the company's better-than-expected second-quarter results and increased full-year earnings guidance. 

- TJX Companies Inc (TJX.US): Barclays raises target price to $136 from $114, after the company reported strong second-quarter results and announced a strategic investment in Dubai-based Brands for Less.