- U.S. indices open with a slight gain
- The dollar resumes its decline, the dollar index loses 0.30%
- GAP (GAP.US) shares gain over 20%
Markets are slowing down a bit towards the end of the week after impressive gains in the previous days. Following lower CPI readings, investors are no longer pricing in interest rate hikes by the Fed. Additionally, markets anticipate the first cuts as early as the end of May and June. Although this is inconsistent with the current rhetoric of the central bank, this fact does not seem to hinder indices from setting new local peaks. Today, the dollar remained one of the weaker currencies in the first part of the day, but started to recover some losses after the opening of the session on Wall Street. EURUSD gains 0.15% today, and the rate consolidates between the resistance line at the top and the SMA200 average, which is a limit from the bottom.
Looking at the US500 chart, we see that the index's quotes are consolidating after significant gains recently. The index is currently only 2.0% from this year's highs and is above the support line at the 4500 point level. If the positive sentiment continues and the dollar remains weak, we may see an attempt to test the ATH at the 4630 point level. Otherwise, in case of breaking the support line at the 4500 point level, levels 4430 and 4400 should be considered.
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Source: xStation 5
Company news:
Gap (GAP.US) jumped over 20% following a better-than-expected earnings report under new CEO Richard Dickson, who has a well established reputation due to numerous achievements in previous companies. Gap’s third-quarter results showed a smaller decline in same-store sales and exceeded revenue expectations with $3.8 billion, against an anticipated $3.5 billion. The company's adjusted earnings per share of 59 cents significantly outperformed the 20 cents forecast. Despite a 7% drop in net sales, analysts see potential in Gap's turnaround, especially with Old Navy's performance. Gap's overall financial stability is solid, evidenced by a positive cash flow and a strong cash balance, but analysts remain cautious about the early stages of its turnaround strategy.
Source: xStation 5
Alibaba ADRs (BABA.US) fall 4.3%, extending Thursday’s decline, and are on track for their lowest level in almost a year.
source: xStation 5
Airbnb (ABNB.US) shares trade sideway after Evercore ISI cut the holiday rentals platform operator to inline from outperform on limited near-term catalysts.
Expedia (EXPE.US) gains as much as 3.5% after Evercore upgraded it to outperform from inline.
