- US500 and US100 slightly lose at the beginning of the session
- US Dollar (USD) one of the stronger currencies today
- US bond yields fall to 4.20%
The last day on Wall Street starts in the red. Indexes lose slightly at the opening of the cash session, but it should be noted that the quotations are currently at historical highs. The weaker sentiment in the stock market is also supported by the strengthening dollar. USD gains by 0.3%, and in most currency pairs between 0.3-0.4%, and even up to 0.6% in the case of NZD, AUD, and SEK. Meanwhile, yields on 10-year US bonds lose from the level of 4.21%.
USDIDX index gains over 0.30% and is approaching the key zone around 104,000. This is the second strong session in a row for the dollar, which is starting to exert stronger pressure on the stock market. Source: xStation 5
US500
The US500 index has been moving very dynamically upwards in recent weeks. Along the way, practically since the beginning of 2024, we have not experienced any significant correction. Looking at the chart, one can notice an almost parabolic upward movement. A correction in the indexes would be justified at this moment. However, looking at the market behavior, which finds reasons for growth in each publication, such a correction is hard to predict unequivocally.
Source: xStation 5
Company News
FedEx (FDX.US) gains as much as 8.70% despite mixed results in Fiscal Quarter 3 (FQ3) and a narrowed outlook for Fiscal Year 2024. This surge was attributed to cost-cutting in its Express business and improved margins in FQ3. The Express segment outperformed expectations with a 2.5% operating margin. The company’s overall adjusted operating margin increased to 6.2%. FedEx revised its FY2024 profit guidance to $17.25 - $18.25 per share and announced a new $5 billion share repurchase program.
Ocugen (OCGN.US) gains as much as 17% after a federal appeals court ruling that upheld a lower court's decision against shareholders' claims. These shareholders had accused the biotech company of misleading investors regarding its COVID-19 vaccine, Covaxin, specifically about obtaining emergency-use authorization from the U.S. Food and Drug Administration. The U.S. Court of Appeals for the Third Circuit rejected these claims, stating that the investors couldn't prove any point where Ocugen misrepresented its engagement with the FDA. The court emphasized that all relevant details were accessible to any reasonable investor.
Nike (NKE.US) shares fell by 8% following a revenue outlook that projected minimal growth. Despite exceeding FQ3 earnings expectations, Nike forecasted about 1% growth in FY2024 revenue and a low single-digit decline in the first half of fiscal 2025, mainly due to challenges in overseas markets.
Lululemon Athletica (LULU): dips over 18% after announcing a first-quarter outlook that was below market expectations. The company projected Q1 revenue of $2.18B - $2.20B and EPS of $2.35 - $2.40, both below consensus estimates. The full-year revenue expectation was set at $10.7B - $10.8B, slightly below the consensus.
Reddit (RDDT.US) shares fell by 8% following their debut, which had initially seen a 48% surge. The stock quotations showed strong initial performance, but the decline followed on the subsequent trading day.
Tesla (TSLA.US) shares declined by 3% amid reports of the company reducing electric car production at its China plant due to slowing EV sales growth.
