US OPEN: Wall Street starts Tuesday session without a common direction

• Wall Street gains slightly in early Tuesday session 
• US100 knocks out an important resistance point
• Lowe's loses after release of quarterly results

Markets in the US open Tuesday's cash session in a mixed mood. Minutes after the Wall Street opening, the Nasdaq is holding near yesterday's closing zones, while the S&P500 is adding 0.05%. The leader of the declines, however, is now the Russell 2000, which is losing 0.4%. Investor attention is now focused on speeches by Fed bankers, the Jackson Hole symposium and tomorrow's FOMC Minutes, which together will outline the possible direction of Federal Reserve policy in the medium term. 

Current volatility observed on Wall Street. Source: xStation 

US100

The Nasdaq-100 index, represented by the US100 contract is trading today near yesterday's closing levels. The instrument broke out above the key resistance zone, which was the 50-day exponential moving average (blue curve on the chart) and the 19,740-point zone, where the previous support ran, which was then set by the main limit of the downtrend. It is the maintenance of this zone in the medium term that could be an important element defining the possible maintenance of a sustained uptrend. In the medium term, on the other hand, an important resistance point may be the psychological zone near 20,000 points.

Source: xStation 5

Corporate News

Patients taking Eli Lilly & Co's (LLY.US) weight-loss injection were 94% less likely to develop diabetes in a three-year study that illuminates the long-term health benefits of treating obesity, according to a clinical study of Tirzepatide. The company's shares are currently gaining 2%. 

Boeing Co. (BA.US) has halted flight testing of its 777X jetliner while it inspects a fleet of four planes for cracks in a key structural component that connects the engines to the plane's wings. The company's shares are losing 1.5%.

Lowe's (LOW.US) shares are losing 1.1% after the company reported mixed quarterly results. What's more, management lowered annual earnings forecasts due to lower-than-expected DIY sales and a challenging macro environment.

2025 FORECAST

• Comparable sales -3.5% to -4%,previously estimated -2% to -3%, analysts expected -2.61% 
• Total sales $82.7 to $83.2 billion, previously estimated $84 to $85 billion, analysts expected $84.28 billion.
• Projected adjusted EPS ~$11.70 to $11.90, previously estimated $12.00 to $12.30.
• Company continues to forecast capital expenditures of ~$2 billion, analysts expected $2 billion

SECOND QUARTER RESULTS

• Adjusted EPS $4.10, estimated $3.97
• Net sales $23.59 billion, -5.5% y/y, estimated $23.9 billion
• Comparable sales -5.1%, estimated -4.43%
• Gross profit $7.90 billion, -6% y/y, estimated $7.96 billion
• Gross margin 33.5% vs. 33.7% y/y, estimated 33.3%
• SG&A expenses as a percentage of revenue 17.1% vs. 16.4% y/y, estimated 17.4%
• Operating margin 14.6% vs. 15.6% y/y, estimated 14.2%
• Total number of locations 1,746, estimated 1,747
• Retail space 194.9 million square feet, estimated 195.97 million square feet

- Estée Lauder (EL.US): Piper Sandler lowered its price target to $95 from $108, after the company reported weak results in China and a lower-than-expected earnings forecast for fiscal 2025. 

- PayPal Holdings (PYPL.US): JPMorgan is raising its target price to $80 from $77, citing the company's strong exposure to digital commerce and the potential for earnings growth under the new CEO's streamlined strategy.