- Wall Street indices open little changed ahead of Fed decision
- US100 trades near 18,360 pts resistance zone
- Intel gains after being award big grants and loans from US government
Wall Street indices launched today's cash session little changed, following an uneventful trading in Europe. S&P 500 opened flat, Dow Jones dropped 0.1%, Nasdaq traded 0.2% higher and small-cap Russell 2000 was down 0.5% at the opening.
FOMC policy decision is a key macro event of the day. US central bank will announce rate decision, as well as release new set of economic forecasts, today at 6:00 pm GMT, with press conference of Fed chair Powell being scheduled for 6:30 pm GMT. It seems certain that Fed will keep rates unchanged, but markets attention will be on dot-plot and whether it still show 3 rate cuts this week.
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Source: xStation5
Nasdaq-100 futures (US100) continued to trade sideways. However, taking a look at H1 interval, we can see that the price has recently bounced off the 18,050 pts support zone and managed to climbed back above 50- and 200-session moving averages. US100 is trading within a striking distance from the 18,360 pts price zone, that has acted as a ceiling for the price recently. Given that we have a big potential risk event later today (FOMC meeting), one cannot rule out the first half of today's trading session to see rather muted moves as investors await the move from US central bank. A dovish FOMC meeting may provide a fuel for a move to the new all-time highs.
Company News
Shares of Intel (INTC.US) trade higher after media reported that company will get around $20 billion in chip funding from US government. Company mat receive $8.5 billion in grants and as much as $11 billion in loans to boost its semiconductor manufacturing capacity
Mobileye Global (MBLY.US) trades higher after the company deepened its partnership with Volkswagen to accelerate development of automated driving functions.
Nasdaq (NDAQ.US) drops after Bloomberg reported that Borse Dubai is seeking to sell 27 million shares of Nasdaq at $58-60.00 per share, or 4-7% below yesterday's closing price.
Chipotle Mexican Grill (CMG.US) trades higher after announcing a large stock split. Company's board approved a 50-for-1 stock split and will seek shareholders approval at annual meeting on June 6, 2024. Analysts see the move as positive, saying it should help aid liquidity on the stock.
Analysts' actions
- Antero Resources (AR.US) upgraded to 'overweight' at JPMorgan. Price target set at $30.00
- CarMax (KMX.US) upgraded to 'buy' at Needham. Price target set at $99.00
- Best Buy (BBY.US) upgraded to 'outperform' at Telsey Advisory. Price target set at $95.00
Intel shares (INTC.US) launched today's trading higher, supported by news of large US grants. Stock bounced off the support zone marked with the 38.2% retracement, that served as the lower limit of trading range. The upper limit of the range in the $45.00 area, marked with 23.6% retracement, is a key near-term resistance to watch. Source: xStation5
