- Wall Street reaches new record highs after FOMC decision
- US100 breaks above the upper limit of triangle pattern
- Earnings reports from Micron Technology, Guess, Accenture and Five Below
Wall Street indices rallied to fresh all-time highs yesterday after FOMC meeting. While US central bank release a hawkish update to its quarterly economic projections, Powell left the door open to the idea of first rate cut being delivered in the first half of this year. Upbeat moods continue on Thursday, with major US stock market indices opening higher. S&P 500 gained 0.5% at the opening, Dow Jones added 0.4% and Nasdaq rallied 0.9%
Source: xStation5
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Open account Try demo Download mobile app Download mobile appNasdaq-100 futures (US100) rallied yesterday following FOMC decision and climbed to fresh record highs. Taking a look at the chart at H1 interval, we can see that price broke above the 18,360 pts resistance zone, that marked the upper limit of an ascending triangle pattern as well as the recent ceiling for the prices. A break above it is a bullish development and suggests that a stronger upward move may be looming. A textbook range of the upside breakout from the pattern suggests a possibility of a move to as high as 18,915 pts, or around 1.3% above current market price.
Company News
Micron Technology (MU.US) rallies today following strong fiscal-Q2 2024 earnings release (calendar December 2023 - February 2024). Company reported 58% YoY jump in adjusted revenue to $5.82 billion (exp. $5.35 billion), a gross margin of $20% (exp. 13.6%) and a 4.7% YoY increase in adjusted operating expenses to $959 million (exp. $950 million). Adjusted operating income reach $204 million (exp. -$238 million), up from $2.08 billion loss a year ago. Cash flow from operating reached $1.22 billion and was well short of $2.14 billion expected by analysts. Adjusted EPS reached $0.42 (exp. -$0.24). Micron Technology expects fiscal-Q3 2024 revenue to reach $6.4-6.8 billion (exp. $5.99 billion), adjusted gross margin of 25-28% (exp. 21%) and adjusted EPS of $0.38-0.52 (exp. $0.24).
Guess (GES.US) rallies today, following release of fiscal-Q4 2024 results (calendar November 2023 - January 2024). Company reported 9% YoY jump in net revenue to $891.1 million (exp. $855.4 million) with gross margin improving from 44.2% in fiscal-Q4 2023 to 45.4% in fiscal-Q4 2024 (exp. 45.2%). EBIT increased 48% YoY to $150.9 million, while adjusted EPS jumped from $1.74 a year ago to $2.01 now (exp. $1.65). Guess expects fiscal-Q1 2025 revenue growth to reach 1-2% while full-year fiscal-2025 revenue growth is seen at 11.50-13.50%. Full-year EPS is expected in the $2.56-3.00 range (exp. $2.93).
Micron Technology (MU.US) erased all the losses made earlier this week and surged to fresh record highs, following release of fiscal-Q2 2024 earnings report. Micron not only booked unexpected profit during the quarter, but also guided for a strong sales growth and margin expectations in fiscal-Q3 2024. Source: xStation5Source: xStation5
Five Below (FIVE.US) plunges after reporting fiscal-Q4 2024 results (calendar November 2023 - January 2024). Company reported 19% YoY increase in net sales to $1.34 billion (exp. $1.35 billion) as well as 3.1% increase in comparable sales (exp. 2.9%). EPS at $3.65 was higher than $3.07 reported in fiscal-Q4 2023 but lower than $3.78 expected. Company expects fiscal-Q1 2025 net sales of $826-846 million (exp. $851 million) and EPS of $0.58-0.69 (exp. $0.73). Full-year fiscal-2025 net sales are seen in the $3.97-4.07 billion range (exp. $4.11 billion) while full-year EPS is seen at $5.71-6.22 (exp. $6.48).
Accenture (ACN.US) drops after reporting fiscal-Q2 2024 results (calendar December 2023 - February 2024). Company reported flat year-over-year revenue at $15.81 billion (exp. $15.82 billion), with booking dropping 2.4% YoY to $21.58 billion (exp. $21.81 billion). Drop in communications, Media & Technology revenue was offset by increase in Health & Public Service revenue. Gross margin improved from 30.6% a year ago to 30.9% now (exp. 30.7%). Adjusted EPS at $2.77 was higher than $2.69 reported a year ago and higher than $2.65 expected this period. Accenture expects fiscal-Q3 revenue to reach $16.25-16.85 billion (exp. $17.03 billion). Full-year fiscal-2025 revenue is seen growing 1 to 3%, while adjusted EPS is seen at $11.97-12.20 (exp. $12.22), up from previous forecast of $11.97-12.32.
Five Below (FIVE.US) launched today's trading with a big bearish price gap. Stock opened below $200.00 support zone today as well as below 200-session moving average (purple line), and is trading at the lowest level since mid-February. Source: xStation5
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