US OPEN: US2000 tests key resistance, Costco surges to record highs

• Wall Street indices trade mixed
• US2000 tests key long-term resistance
• Costco climbs to fresh record high after earnings

Wall Street indices launched today's trading mixed - S&P 500 was down 0.2% at the opening, Nasdaq gained 0.2% while Dow Jones and small-cap Russell 2000 launched trading flat. However, S&P 500, Dow Jones and Russell 2000 moved lower during the first hour of the cash session while Nasdaq extended gains to around 0.4%.

Source: xStation5

Taking a look at Russell 2000 futures (US2000) chart at D1 interval, we can see that the index has been trading in a strong upward move since the turn of October and November. Gains accelerated this week after new projections from Fed hinted at 3 rate cuts next year. US2000 broke above the 2,000 pts mark yesterday for the first time early-August 2023 and tested the resistance zone ranging around 2,025 pts mark. An attempt to break above this zone yesterday failed and an initial attempt to do so today also seems to have failed. There is a risk of painting a bearish pin bar pattern near an important resistance given long, upper wick of today's daily candlestick. This could hint that some profit taking may be looming following recent strong gains. Should we see a pullback being launched, the first major support to watch can be found in the 1,920 pts area.

Company News

Costco Wholesale (COST.US) trades higher following release of fiscal-Q1 2024 earnings yesterday in the evening. Company reported EPS at $3.58, above expected $3.41, and revenue at $57.8 billion, more or less in-line with market expectations. Same-store sales increased 3.8% YoY, in-line with expectations. Higher food sales, thanks to Thanksgiving weekend, supported results. Company announced a one-time special dividend of $15 per share.

Intel (INTC.US) gains after presenting a new AI chip yesterday. Company said that its Gaudi 3 accelerator processor outperforms the H100 data center GPU from a rival Nvidia (NVDA.US)

Analysts' actions

• First Solar (FSLR.US) rated 'buy' at Jefferies. Price target set at $211.00
• Kimberly-Clark (KMB.US) downgraded to 'underperform' at Bank of America. Price target set at $115.00

Costco Wholesale (COST.US) jumps over 3% and paints another fresh all-time high above $650 mark today. Solid fiscal-Q1 earnings as well as special dividend announcement are driving share price higher. Source: xStation5