Today's session saw the U.S. stock market open in mostly positive sentiment, despite sizable declines among several large companies that reported financial results today. Bond yields fell momentarily after the JOLTS report weakened the dollar, but are trading at solid highs today; the 10-year is already up above 4.31%. The overall picture of today's macro releases looks solid, especially from the standpoint of assessing the US consumer 'shouldering' the performance of US companies.
- Wall Street opens the session with gains; US100 gains more than 0.5% to 20560 points, but other indexes are trading on a slight upside; US2000 loses more than 0.6% despite the weakening dollar
- Mixed data from the US market. Weaker JOLTS report, but strong inventory data, strong gains in comparable sales at retail chains and Conference Board sentiment
- DR Horton loses 12% after results and puts pressure on US construction sector
- Ford under pressure from Q3 report; solid results fell short of investor expectations
- Wall Street await to huge earnings reports today, after the US-session (Visa, Alphabet and AMD)
In addition to PayPal and DR Horton, shares of Novartis (NVS.US) and New Era Energy (NEE.US) are losing heavily. Shares of Ford (F.US) are losing and Pfizer (PFE.US) is losing despite solid financial results. Source: xStation5
Start investing today or test a free demo
Open real account TRY DEMO Download mobile app Download mobile appUS100 (M30 interval)
Nasdaq 100 futures are gaining today and breaking out above short-term resistance in the form of the 23.6 elimination of the recent upward momentum. Key to watch is the current zone of 20,600, where we have seen negative price reactions several times before, and levels close to 20700 points, a break through of which could open the way for the bulls to reach 21,000 points.
Source: xStation5
Today's macro readings from the US
JOLTS report (number of job openings): 7.443 million, vs. 8 million forecast and 8.040 million previously.
Consumer Sentiment by Conference Board: 108 vs. 98 forecast and 97 previously
- U.S. House Price Index rose 0.3% m/m vs. 0.1% expected and 0.1% previously (4.2% y/y vs. 4.5% previously).
- US 20-year Case/Schiller index was 5.2% y/y vs. 5.1% y/y and 5.9% y/y previously
- US Redbook (sales growth at large retail stores in the US) was 5.6% y/y vs. 4.6% previously.
- US wholesale inventories m/m were -0.1% m/m vs. 0.1% m/m and 0.1% previously
- US retail inventories excluding automobiles were 0.1% m/m vs. 0.5% expected and 0.5% previously.
Overall data point to stronger consumer demand, with wholesale inventories falling, a higher pace of comparable sales growth in the US Redbook, and a higher-than-expected average house price index.
News from companies
- D.R. Horton (DHI) loses more than 11%; home builder forecast 2025 revenue lower than average analyst estimates; Q3 2024 revenue also disappointed forecasts, while markets worry that low affordability of more expensive homes will put downward pressure on demand in coming quarters
- Leidos (LDOS) a provider of software services for the defense, healthcare and airport control systems sectors, raised its profit forecast for the year, which fell short of Wall Street expectations
- Shares of apparel and footwear holding VF Corp. (VFC.US) are gaining after the owner of Vans and North Face reported adjusted earnings per share for the second quarter from continuing operations that unexpectedly beat estimates, lifting the stock from local lows
- Consumer electronics company and one-time tech sector giant Xerox (XE.US) softened its previous full-year revenue forecast, citing lower-than-expected hardware sales.
Ford disappoints Wall Street
Ford (F.US) expects to hit the lower end of its full-year earnings forecast, with the price war hitting the automaker's bottom line. Ford expects to earn about $10 billion before interest and taxes this year, compared with $10 billion to $12 billion previously expected. The company reported third-quarter net income of $900 million, or $0.22 per share, compared with $0.3 in Q3 2023. On an adjusted basis, Ford reported quarterly earnings of 49 cents per share, compared with analysts' average estimate of 47 cents, but this was not enough to improve sentiment around the stock.
Ford shares settled below the 50- and 200-session moving averages, suggesting a return to the downtrend and at the same time a retest of the lower limit of the price channel.
Source: xStation5
