US Open: US500 gains slightly ahead of Fed decision 🗽Nvidia up 4%, Heico and General Mills under pressure

Wall Street opens flat; contract on the S&P 500 (US500) gains slightly - Tesla (TSLA.US) loses the strongest of the BigTechs. Most sectors are down slightly today, but Nvidia shares are up almost 4% after yesterday's declines; the semiconductor segment is gaining and improving overall market sentiment today.

• Listings of aerospace and defense systems supplier Heico (HEI.US) lose nearly 7% and test the EMA200 - reason for disappointing results
• General Mills (GIS.US) shares under pressure; maker of popular breakfast cereals cuts forecasts; company loses 3% after losing almost 6% on the US session start
• Fed decision at  PM GMT, Powell conference at 7:30 PM GMT )probably another 25 bps cut) - almost 1 hour after the US session, sentiments on Wall Street are quite mixed

US500 (H1 interval)

Looking at the hourly interval, we see that the US500 is trading in a formation resembling a bullish flag. The key resistance level is now around 6080 points, and support is around 6030 points.
Source: xStation5

In addition to semiconductors, the healthcare sector is also doing well today; United Health Group (UNH.US) is gaining, supporting the DJIA index.

Source: xStation5

General Mills under pressure

Food manufacturer, best known for its breakfast cereals and snacks General Mills (GIS.US) reported 39% higher year-on-year earnings per share (EPS), but that wasn't enough to satisfy Wall Street, as the company lowered its full-year guidance. The company's mixed results suggest that the U.S. consumer may not be materially as strong, or has changed preferences - a jump in y/y net income was 'paid for' by weak sales growth.

• Sales in fiscal Q2 2025 rose 2% y/y to $5.2 billion, while organic sales growth was 1%. Operating profit rose 33% y/y to $1.1 billion, mainly due to business strength in the U.S. market where, although sales were flat y/y, over 5% growth in the pet food business and 8% in the 'Foodservice' segment versus 1% growth in international markets.
• The company lowered its full-year organic sales growth to 1% y/y and expects operating profit to fall between 2% and -4% vs. the -2% previously forecast. It pointed out that while market share has increased, promotional campaigns continue to put pressure on margins. The international business also generated $24 million in profit, compared to $32 million in the same period last year. The stock is losing nearly 3% today. 

General Mills shares lost almost 6% after the opening, but buyers are trying to take the stock higher; the stock is bouncing off levels of key support, where we have seen more bullish activity several times in recent quarters.

Source: xStation5

Heico loses 6% and tests long-term support after results

Investors were disappointed by the results of U.S. aerospace and defense parts and systems supplier Heico (HEI.US). Earnings per share in Q3 2024 were $0.99 per share on $1.014 billion in revenue; Wall Street had expected $0.98 and $1.03 billion in sales.

• The market is therefore entitled to feel a bit disappointed, in view of Heico's 'stretched' and indicator-heavy valuation. The y/y earnings growth rate was 34% against 8% revenue growth. This was the first quarter in the company's history when sales exceeded $1 billion, although its y/y growth has been slowing for four quarters.
• The company indicated that it still sees strong demand for its key products, although some weakness was evident in its Electronic Technologies Group unit, where orders for the defense sector fell. For the full year, Heico estimates a 17% increase in earnings per share. The company announced its 93rd-ever (since 1979) semi-annual dividend payment of $0.11 per share.

Source: xStation5