- Wall Street indices open more or less flat
- US500 tests 50-session moving average
- Viking Therapeutics surges 17% after Q2 earnings
- Edward Lifesciences slumps 25% after Q2 earnings
Wall Street indices launched today's cash session more or less flat compared to yesterday's closing levels. S&P 500, Dow Jones and Nasdaq opened 0.05-0.10% higher, while small-cap Russell 2000 added 0.3% at session launch. This comes after yesterday's steep sell-off triggered by disappointing earnings releases from Alphabet and Tesla.
US GDP report released earlier today turned out to be a positive surprise, with annualized growth accelerating from 1.4% in Q1 2024 to 2.8% in Q2 2024, while analysts expected an acceleration to 2.0%. While the report triggered an uptick on US index futures, it was not enough to trigger a large move. Traders are weighing solid data from the US economy against risk of smaller or slower easing from Fed.
إبدأ بالإستثمار اليوم أو تدرّب على حساب تجريبي
قم بفتح حساب حقيقي جرب الحساب التجريبي تحميل تطبيق الجوال تحميل تطبيق الجوال
Source: xStation5
Wall Street indices are not allowed to catch a breath after yesterday's sell-off, with major US benchmarks failing to launch a recovery move. Taking a look at S&P 500 futures chart (US500) at D1 interval, we can see the index trade lower today, but the magnitude of the move is nowhere near that from yesterday. Index is making a break below the 50-session moving average (green line) today. However, according to Overbalance methodology, as long as the price stays above 5,350 pts area, where the lower limit of market geometry and 23.6% retracement can be found, the main trend remains bullish.
Company News
Viking Therapeutics (VKTX.US) launched today's cash session with a big bullish price gap, following release of Q2 earnings report. Company reported a $0.20 loss per share, less than $0.27 loss expected by analysts and slightly more than $0.19 loss reported a year ago. Drug developer is still in early-stage and continues to report $0 quarterly revenue. However, company said that its weight-loss drug advanced to late-stage trials and it is driving a spike in Viking's share price.
ServiceNow (NOW.US) jumped at the launch of today's cash trading, responding to Q2 earnings release. Company reported adjusted revenue at $2.64 billion (exp. $2.61 billion), with subscription revenue reaching $2.54 billion (exp. $2.53 billion). Adjusted gross profit of $2.17 billion also turned out to be higher than $2.15 billion expected. Remaining performance obligation was reported at $18.6 billion (exp. $17.6 billion), while current performance obligation was reported at $8.78 billion (exp. $8.68 billion). Company expects Q3 subscription revenue at $2.66-2.67 billion (exp. $2.68), while full-year forecast calls for 2024 subscription revenue of $10.58-10.59 billion, up from previous guidance of $10.56-10.58 billion.
Viking Therapeutics (VKTX.US) launched today's trading with a big bullish price gap. Stock rallies after Q2 earnings releases and is trading around 17% higher on the day. Bulls are now testing $60 resistance zone. Source: xStation5
West Pharmaceutical Services (WST.US) takes a hit after cutting full-year forecasts. Company reported 6.9% YoY drop in Q2 net sales to $702.1 million (exp. $729.3 million), with Proprietary Products net sales dropping 9.4% YoY to $559.7 million (exp. $592.8 million). Organic sales were 5.9% YoY lower. Adjusted operating income plunged 32% YoY to $126.4 million (exp. $155.1 million) and adjusted EPS was reported at $1.52, lower than $1.74 expected and $2.11 reported a year ago. Company lowered full-year net sales forecast from $3.00-3.03 billion to $2.87-2.90 billion) and adjusted EPS forecast from $7.63-7.88 to $6.35-6.65.
Edwards Lifesciences (EW.US) slumped after reporting a big miss in Q2 revenue. Company reported 9.4% YoY drop in revenue to $1.39 billion (exp. $1.65 billion). However, gross margin unexpectedly improved from 77.6% a year ago to 79.4% now (exp. 76.6%). Adjusted EPS of $0.70 also turned out to be higher than $0.66 reported a year ago and $0.69 expected by analysts for this quarter. Company expects Q3 sales to reach $1.56-1.64 billion (exp. $1.62 billion) while Q3 adjusted EPS is seen at $0.67-0.71 (exp. $0.69).
Edwards Lifesciences (EW.US) slumped after big Q2 sales miss. Company launched today's trading around 25% lower and trades at the lowest levels since November 2023. Source: xStation5
