US Open: Wall Street struggles for direction amid ongoing earnings season 📃

• The dollar gains slightly in the first part of the day
• US bond yields also gain
• Indexes on Wall Street open slightly higher

The indices on Wall Street open slightly higher again on Thursday. However, the US500 and US100 remain in consolidation at key levels. Capital continues to favor smaller companies, with the US2000 index gaining 0.55% to 2280 points. In contrast, the US500 gains 0.27% to 5670 points and the US100 gains 0.33% to 20100 points. Although the dollar gains slightly at the start of the session today, overall it remains in a strong downtrend initiated by the US CPI report. 

US2000

The smaller-cap index has been posting impressive gains in recent days. After yesterday's consolidation, today investors are starting the day in an optimistic mood. The momentum has slowed down below the key resistance zone around the 2300 point level. After such significant increases, a correction is not excluded. In that case, the 2200 point level is worth keeping an eye on. However, if the bulls manage to break through the resistance level at 2300 then the next potential range would be around 2400 points. 

Source: xStation 5

Company news

Taiwan Semiconductor (TSM.US) gains 1.10% after a strong Q2 earnings report. Investors reaction to the publication shows that strong results were mostly expected. Revenue surged by 40% year-over-year to NT$673.51 billion, with net income increasing by 36%. The company also projected Q3 revenue between $22.4 billion and $23.2 billion, surpassing analyst expectations and marking a significant year-over-year increase.

Warner Bros. Discovery (WBD.US) gains as much as 4.60% amid speculation about strategic options, including asset sales or a spinoff of its streaming service and movie studios. This potential separation could isolate the high-growth streaming business from the debt-laden legacy TV networks.

Nokia (NOK.US) dips 5.45% after an 18% decline in Q2 sales and a 32% fall in operating profit due to weak demand for its 5G equipment. CEO Pekka Lundmark highlighted the significant impact of a challenging comparison period, as the prior year saw a peak in India's 5G deployment, which accounted for most of the decline.

Beyond Meat (BYND.US) plunged by almost 10.00% after the plant-based meat company published an announcement about ongoing discussions with bondholders about balance-sheet restructuring. With significant cash burns and dwindling liquidity, Beyond Meat is exploring options with a group holding over $1 billion of its convertible notes. The company's cash reserves have dropped from $258.6 million to $157.9 million, with long-term debt at $1.139 billion, raising investor concerns.

Domino's Pizza (DPZ.US) also saw nearly 10.00% decline after mixed Q2 results. Domino's lowered its international store growth target for 2024 due to franchisee challenges and paused its long-term plan of opening over 1,100 new stores globally each year.