- Wall Street opens little changed
- US100 fails to paint a lower low in short-term downtrend
- SoFi Technologies jumps after reporting quarterly profit
Wall Street indices are trading little changed compared to Friday's closing levels at the start of US cash session today. The situation on the global financial markets after the week is calm. A weekend drone strike on US military outpost in Jordan that killed 3 US serviceman did not trigger any major moves on stock markets, while jump in oil prices was rather small and brief. The upcoming slew of top-tier US tech earnings scheduled for this week as well as FOMC decision on Wednesday are potential movers for US indices in the days to come.
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Nasdaq-100 futures (US100) reached fresh all-time highs last week but has since pulled back a bit. Taking a look at US100 chart at H1 interval, we can see that the index reached fresh record highs just slightly below 17,800 pts mark last week, but bulls failed to hold onto those gains. A pullback was launched and a sequence of lower highs can be spotted on the chart. However, the index has failed to paint a lower low following the weekend, with 17,450 pts area being a key support to watch now. On the other hand, today's advance was halted in the 17,575 pts resistance zone, marked with previous price reactions, 50-hour moving average and the short-term downward trendline. A break through either of those area - 17,450 pts support or 17,575 pts resistance - may determine the direction of the next major price impulse.
Company news
SoFi Technologies (SOFI.US) trades higher after reporting the first profitable quarter since going public. Company reported adjusted Q4 net revenue at $594.2 million, marking an increase of 34% YoY and coming in significantly above $573.2 million expected. Adjusted EBITDA at $181.2 million was higher than $70.1 million reported a year ago and also higher than $139.9 million expected. EPS came in at $0.02, compared to an expected loss of $0.05 per share. Membership count spiked 44% YoY to 7.54 million. SoFi Technologies expects adjusted Q1 2024 net revenue to reach $550-560 million (exp. $580 million) and adjusted EBITDA to reach $110-120 million (exp. $128.2 million).
Amazon (AMZN.US) informed in a press release that it has reached agreement with iRobot (IRBT.US) to terminate the pending acquisition agreement. Acquisition agreement was originally signed in August 2022 and assumed Amazon acquiring iRobot for cash consideration. iRobot shares plunge double-digits at US session launch.
US-listed shares of Dutch medical equipment manufacturer Philips (PHG.US) are trading lower today, following the release of Q4 2023 earnings. Company reported a 6.6% YoY drop in Q4 sales to €5.06 billion (exp. €5.32 billion), as well as an 86% YoY plunge in income from operations to €24 million (exp. 439.8 million). A massive miss in earnings was due to Connected Care unit, which reported a loss from operation of €332 million, compared to expected profit of €7.61 million. Net income came in at €39 million and was much lower than €337 million expected. Company also announced that it will halt sales of sleep apnea devices following in the United States following agreement with US Food and Drug Administration.
Analysts' actions
- Dollar Tree (DLTR.US) upgraded to 'overweight' at JPMorgan. Price target set at $157.00
- Warner Bros Discovery (WBD.US) downgraded to 'equal-weight' at Wells Fargo. Price target set at $12.00
- ZIM Integrated Shipping Services (ZIM.US) upgraded to 'buy' at Jefferies. Price target set at $20.00
Shares of SoFi Technologies (SOFI.US) launched today's trading with a big bullish price gap after the company reported first quarterly profit. Stock opened above the $8.00 resistance zone and trades at the highest level since January 3, 2024. The next level to watch should bulls remain in control can be found in the $9.00 swing area. Source: xStation5
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