- Wall Street indices open mostly higher
- Crypto-linked stocks jump after Bitcoin spot ETF approval
- Chesapeake Energy to acquire Southwestern Energy
Wall Street indices launched today's trading mostly higher - S&P 500 gained 0.3% at the opening, Nasdaq jumped 0.6%, Dow Jones traded flat and small-cap Russell 2000 dropped 0.6%. Crypto-linked companies gain after US SEC approved Bitcoin spot ETF yesterday as Bitcoin jumped above $48,000 mark.
US CPI inflation data for December released earlier today showed a bigger-than-expected acceleration in the headline price growth as well as smaller-than-expected deceleration in core price growth. This has triggered USD strengthening and a pullback on US index futures, but part of those moves has been erased since.
Source: xStation5
S&P 500 futures (US500) pulled back from the 4,830 pts resistance zone, following release of 'hawkish' inflation data. Drop was halted at the 4,805 pts support zone, marked with 50-session moving average, and the index began to recover later on. Another test of the 4,830 pts area was made, but buyers failed to push the price above and US500 began to pullback, following the launch of US cash session. The two aforementioned levels - 4,805 pts support and 4,830 pts resistance - are key areas to watch today.
Company News
Chesapeake Energy (CHK.US) announced that it will acquire Southwestern Energy (SWN.US) for $6.69 per share in an all-stock transaction valued at $7.4 billion. Shareholders of Southwestern Energy will receive 0.0867 shares of Chesapeake for each share they own, and will collectively own approximately 40% of a new company. Deal is expected to close in the second quarter of 2024.
Microsoft (MSFT.US) trades 1% higher today and overtakes Apple (AAPL.US) as the biggest company by market value. Apple shares drop 0.6%.
US crypto-linked stock are trading higher today, following SEC approval of Bitcoin spot ETF. Coinbase (COIN.US) gains 5%, Cleanspark (CLSK.US) adds 12%, Marathon Digital Holdings (MARA.US) rallies 11% and Riot Platforms (RIOT.US) jumps 8%.
Citigroup (C.US) trades slightly lower today. The bank said in a filing that it will set $1.3 billion in reserve to cover risks in Argentina and Russia. Company said that while those are meaningful for its 2023 results, it is still on track to meet 2023 guidance.
Office Properties Income Trust (OPI.US) plunges over 10% after cutting dividend. Company lowered the dividend per share from $0.25 to $0.01.
Analysts' actions
- L3Harris (LHX.US) upgraded to 'overweight' at JPMorgan. Price target set at $240.00
Chesapeake Energy (CHK.US) launched today's trading over 3% higher following news on Southwestern Energy acquisition. Bulls are now facing a medium-term resistance zone in the $80.50 area. Source: xStation5
