US Open: Wall Street gains slightly at the open

• Wall Street opens higher on the second day of this week
• The dollar gains slightly
• Yields on US bonds drop to 4.30%

Futures on indexes are traded higher at the opening of the cash session on Wall Street. The US100 gains 0.11%, approaching the level of 18,000 points, and the US500 is noted at a slight increase of 0.05%, around 5,080 points.

Companies in the Health Care sector are gaining the most at the session's opening. Banks and companies in the fuel sector are also seeing increases. Source: xStation 5

The US500 is quoted 0.05% higher at the opening, around 5,080 points. The price slightly pulled back after testing the level of 5,110 points at the end of last week. In the event of a correction, it's important to closely watch the levels of 5,000 points and 4,970 points. Otherwise, the next target for the bulls remains the previously mentioned level of 5,110 points. Source: xStation 5.

Market insights

• BlackRock said investors should rely more on actively managed strategies. Higher interest rates, persistent inflation and more geopolitical risk offer active managers and hedge funds a bigger opportunity to beat simple buy-and-hold portfolios

• The global economy has a growing chance of pulling off a soft landing, according to a draft communique by G-20 finance chiefs meeting in Sao Paulo this week. But it tempered the upbeat view with warnings about the risks regarding faster-than-expected disinflation and global conflicts.

• State Street Global Advisors said that the US economy is far from a recession. Still, the firm acknowledged that topping 2023’s growth levels this year may come as a challenge with the Federal Reserve likely to hold rates higher for longer.

• The artificial intelligence boom is contributing to the majority of gains according to BTIG, as the semiconductor and equipment index is now higher by almost 30% in 2024.

• The average favorable rating for Donald Trump hit its highest level since before the 2022 midterm
  elections, as the former president marches toward a likely November rematch against a less popular Joe Biden.

Company News

Viking Therapeutics (VKTX.US) surged by 80% following impressive phase 2 results for its GLP-1/GIP dual agonist, VK2735. The VENTURE trial successfully met its primary and all secondary endpoints, with participants on VK2735 experiencing statistically significant weight reductions compared to the placebo group.

Norwegian Cruise Line Holdings (NCLH.US) soared over 10% in pre-market trading following an unexpected profit forecast for the current quarter and an annual earnings guidance that aligns closely with expectations. The company predicts Q1 2024 adjusted earnings per share of 12 cents, defying the anticipated loss of 20 cents per share. For the full year 2024, it expects adjusted earnings per share of $1.23, slightly below the consensus estimate of $1.24. NCLH also reported entering 2024 with record-high bookings and pricing for its voyages.

Macy's (M.US) gains approximately 7% as the company announced strategic measures for growth, including closing 150 underperforming stores and concentrating on expanding its Bloomingdale's and Bluemercury brands. Although Macy's beat top and bottom line expectations for Q4 2023, it experienced a 5.4% drop in comparable sales.

Source: xStation 5

eBay (EBAY.US) is in focus as the company is set to announce Q4 2023 results after market close. Analysts expect a revenue of $2.51 billion and earnings of $1.03 per share. eBay, which recently announced a 9% reduction in its workforce (about 1,000 full-time jobs), joined several large tech companies in downsizing to sustain long-term growth. The company had previously issued a cautious guidance for the holiday quarter.

Alibaba Group Holding (BABA.US) has made a significant investment in the field of generative AI by creating a $1 billion funding round for Moonshot AI, a Chinese startup. This investment has significantly enhanced Moonshot AI's valuation, bringing it to approximately $2.5 billion, which is eight times higher than its valuation during the initial round of financing. This move places Alibaba alongside other major players like Tencent Holdings Ltd., Microsoft Corp., and others who are investing heavily in generative AI technologies.