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US indices caught a bid during cash session
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Dow Jones remains below short-term trendline
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Nikola plunges as choir of critics increases
Major indices from Wall Street opened with small gains on the final trading session of the week. Trading in the first hour of the cash session was muted with indices struggling to find a direction. However, indices caught a bid later on. There are no macro readings left today that could push the markets significantly.
When it comes to US politics, one can expect a bit of a quiet day as well as the United States commemorates victims of September 11 attacks. It looks highly unlikely that either Biden or Trump will decide to announce any major moves today as making politics on September 11 is undesired to say the least.
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While the Dow Jones index (US30) did not manage to paint a lower low yesterday, it also did not manage to paint a higher high. The index is trading higher today but remains below key resistance - a short-term downward trendline (currently near 27,850 pts) - and unless we see a break, bearish bias could prevail. Source: xStation5
Peloton (PTON.US) gains after publishing quarterly results for fiscal Q4 and forecasts for fiscal 2021 (Q3 2020 - Q2 2021). Manufacturer of indoor bikes and other recreational devices experienced a 172% YoY surge in revenue, to $607.1 million. Net income jumped from $90.5 million from a net loss of €43 million a year ago. Company expects revenue for full fiscal-2021 in the $3.50-3.65 range against a median estimate of €2.74 billion. Revenue in Q1 2020 (calendar Q3 2020) is seen in the $720-730 million range, what would mark an over 200% YoY increase!
Nikola (NKLA.US) refuted a report issued by Hindenburg saying that it has nothing to hide. However, investors not only did not buy into this plain response but even sent shares over 15% lower today. Why? Analysts at Citron Research backed Hindenburg saying that Nikola is a fraud and said they expect the stock to drop as much as 40% over the next month (to $40 a share).
Nikola trades over 15% lower today after Citron Research joined Hindenburg in calling the company a fraud. Market's reaction to the support zone at $29.50 will be crucial for future moves. Source: xStation5
Share price of Oracle (ORCL.US) has hit a fresh all-time high today following the release of quarterly report. Sales during fiscal Q1 (calendar June-August) increased 1.6% YoY to $9.37 billion and topped analysts' median estimate of $9.19 billion. This comes after a 6% YoY decline in the March-May period. Net income increased 17.4% YoY, to $2.376 billion. Solid performance of the cloud segment allowed the company to avoid revenue drop. Oracle is one of the stocks making bids for US operations of TikTok.
EBay (EBAY.US) made some major changes to its Board of Directors. Most of all, Pierre Omidyar, company's founder, stepped down from the Board along with Jesse Cohn, Board member backed by activist investor Elliott Management. Cohn stepped down as the company responded to Elliott's pleas last year and fired previous CEO Devin Wening.
S&P 500 top movers at 3:56 pm BST. Source: Bloomberg
