US Open: UPS slumps 12% amid weak Q2 earnings 📉 Danaher and MSCI rallt 📈

• Wall Street indexes record limited volatility early in the session. US500 gains 0.16%
• Powerful 12% sell-off on shares of logistics company UPS (UPS.US) - stock bounced off SMA200
• Danaher (DHR.US) gains 7% after Q2 report; passive investment trend supported by MSCI (MSCI.US) report - stock gains over 12%
• Strong results from Lockheed Martin (LMT.US) improve defence company sentiment; company shares gain nearly 4%
• Today's session on Wall Street brings limited volatility in the stocks of major, publicly traded companies.

Yields on 10-year U.S. bonds are losing slightly, falling nearly 2 basis points. UPS results were a big disappointment, the company is struggling with cost pressures. On the other hand, Coca-Cola's solid results and outlook eased some concerns about the health of the economy; Spotify also gains more than 12% thanks to an upgrade in forecasts and a very solid Q2 2024 report.

• U.S. pending home sales in June were 3.89 million vs. 3.99 million forecast and 4.11 million previously (-5.4% y/y vs. -3.04% forecast and -0.7% previously)
• Average sales price rose to nearly $420,000, up 4.1% year-on-year
• Richmond Fed regional index fell to -17 vs. expected improvement to -6 after -10 in May

Source: xStation5

US500 chart (M15 interval)

S&P 500 futures are gaining just under 0.17% today; buying volume is prevailing, with the first target likely to be the 5640-point zone, where we see recent significant price reactions and the 38.2 Fibonacci retracement of the upward wave from early July. The short-term V-shaped rebound began with a move from the 5540-point level, which currently serves as important support for the bulls.

Source: xStation5

• Danaher Company (DHR.US) surprised Wall Street with revenue of $5.74 billion versus $5.59 billion in expectations (and $5.9 billion in Q2 2023) and a higher-than-estimated increase in net income. Cost of sales fell by more than $100 million, to $2.3 billion. The medical and scientific device maker expects a low-single-digit y/y sales decline in 2024, but the dynamics of its business, primarily through its Cepheid platform, still indicate significant growth potential, in a revenue rebound scenario in 2025. Gross and operating profit indicated modest y/y growth. The stock is gaining more than 7% today.
• MSCI Financial Company (MSCI.US), which focuses on providing investors with long-term, diversified investment products, is up more than 12% today. The company's revenue rose 14% to $708 million year-on-year, compared to expectations of less than $700 million. In turn, adjusted earnings per share rose more than 9% y/y to $3.37. Operating margin fell slightly to 54% in Q2, compared to 55.7% a year earlier, but despite this, net income rose poand 8% to $266.8 million. The company also repurchased nearly 600,000 shares at an average price of $484 per share; in total, spending nearly $290 million on the buyback in Q2. The company will pay a $1.6 dividend per share.

Source: xStation5

United States Parcel (UPS.US) reported weak Q2 results for the year today, reflecting not so much weaker demand as high competition in the market; the company has increased gross margins in recent quarters, but net earning, however, has been declining. Shares are losing more than 12%. High freight costs, with limited demand for it, are dragging on the company's results. UPS today reduced its full-year revenue forecast to $93 billion vs. $94.5 billion estimated in Q1 2024. Operating profit fell to $1.94 billion vs. $2.78 billion in Q2 2023. Net income per share came in at $1.65 (revised $1.79 vs. nearly $2 forecast), and revenue was $21.8 billion vs. $22.18 billion expected by Wall Street.

UPS stock (UPS.US)

UPS shares are experiencing a sizable sell-off today and have failed to overcome major resistance in the form of the 200-session moving average, which currently runs around $147 per share. 

Source: xStation5