US OPEN: Wall Street drops at the start of Tuesday's session

• U.S. indices slump in early Tuesday session
• US100 in the 16,000 point zone
• Investors' attention turns to FOMC Minutes, retail company results and Nvidia earnings

Wall Street indices started today's trading slightly higher. The S&P 500 and Nasdaq gained 0.2% and 0.46% at the opening, respectively, while the Dow Jones rose 0.1%. The economic calendar for today is focused on results from companies in the retail sector, FOMC minutes and Nvidia's (NVDA.US) quarterly report scheduled after the Wall Street session ends. 

Source: xStation5

The US100 index is starting today's session lower and approaching the psychological zone of 16,000 points, which after yesterday's breakout is now the most important local support zone. The 16,060-point zone (local peaks from the second half of July 2023) is now the most important resistance structure for the US100, yesterday the benchmark tested this zone and managed to close the upper body of the D1 candle above this barrier. 

News

Abercrombie & Fitch (ANF.US) raises forecasts after quarterly sales increase of 20%. The company raised its full-year forecasts again after another quarter of sales growth. However, the company's shares are losing more than 4% early in the session. 

Q3 results:

Earnings per share: $1.83 vs. expected $1.18

Revenue: $1.06 billion vs. expected $981 million

Source: xStation

Best Buy (BBY.US) shares are losing nearly 5% early in the session following the release of worse-than-expected sales results for Q3 2023. The company now expects revenue in the range of $43.1 billion to $43.7 billion for the fiscal year, compared to the previous range of $43.8 billion to $44.5 billion. Comparable sales are expected to fall in a range of 6% to 7.5%, down from previous forecasts of a decline of 4.5% to 6%.

Dick's Sporting Goods (DKS.US) shares fared much better, gaining more than 8.4%. The company reported an unexpected increase in comparable sales in the third quarter and raised its annual earnings forecast. 

A seventh consecutive decline in comparable sales for Lowe's (LOW.US) lifts the company's shares 4.5% lower on an intraday basis early in today's session. 

Recommendations:

- Dell Technologies Inc (DELL.US): Melius Research begins coverage with a $95 price target, anticipating optimistic demand for PCs, especially commercial PCs, where the company holds a third of the market in the US.

- Zoom Video Communications Inc (ZM.US): Piper Sandler cuts its target price to $69 from $76, taking into account uncertainty in the macro environment, unfavorable currency factors and additional scrutiny on payment terms.