- Wall Street opens higher after in-line CPI reading
- US500 tested 5,300 pts area
- GameStop and AMC drop as meme stock rally eases
Wall Street indices launched today's trading higher, supported by an in-line CPI reading for April. While the data was in-line with expectations, it was also the first reading of 2024 that did not surprise to the upside. This explains a strong dovish market reaction that followed the release. S&P 500, Dow Jones and Nasdaq gained around 0.5% at session launch.
Source: xStation5
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Open account Try demo Download mobile app Download mobile appS&P 500 futures (US500) jumped following release of in-line CPI data for April. An in-line reading was welcome as all previous CPI readings release in 2024 surprised to the upside. Taking a look at US500 chart at H4 interval, we can see that the index tested 5,300 pts resistance zone in the aftermath of inflation data release, but bulls were unable to push the price above it. A small pullback occurred later on, but the index continues to trade at the highest level early-April 2024. Should we see a break above the 5,300 pts area, the index will trade just around 0.5% below its all-time highs
Company News
Rally in meme stocks shows signs of cooling. While GameStop (GME.US) and AMC Entertainment (AMC.US) traded over 10% higher in premarket earlier today, those gains were erased before Wall Street session launched and the two stocks opened lower.
New York Community Bancorp (NYCB.US) launched today's trading higher. Stock gains on news that it has agreed to sell around $5 billion in mortgage warehouse loans to JPMorgan. Company said that the transaction will not only help boost liquidity but will also result in 65 basis points addition to CET1 ratio. Ratio of cash-to-assets is expected to improve from 20 to 24%, while loan-to-deposit ratio is expected to decline to 104% from around 110% at the end of Q1 2024.
Nu Holdings (NU.US) gains after reporting record revenue and profits for Q1 2024. Company reported total revenue at $2.70 billion, much higher than $2.35 billion expected. Total deposits were reported at $24.25 billion (exp. $24.2 billion). Digital bank added 5.5 million clients during the quarter (exp. +4.5 million), bringing a total client count to 99.3 million (98.7 million). Net income surged by almost 170% YoY to $378.8 million (exp. $336.1 million).
NEXTracker (NXT.US) is rallying at a double-digit pace today, following release of fiscal-Q4 2024 earnings (calendar Q1 2024) yesterday after market close. Company reported a 42% YoY jump in fiscal-Q4 revenue to $736.5 million (exp. $682.8 million). Adjusted EBITDA surged by around 120% YoY, to $159.6 million (exp. $133.6 million). Adjusted EPS reached $0.96 (exp. $0.68). Company also issued an upbeat EBITDA guidance for fiscal-2025. NEXTracker expects full-year revenue to reach $2.8-2.9 billion (exp. $2.87 billion) and adjusted EBITDA of $600-650 million (exp. $596 million).
Analysts' actions
- Accenture (ACN.US) downgraded to 'hold' at Deutsche Bank. Price target set at $295.00
GameStop (GME.US) launched today's trading with an around-17% bearish price gap and continued to move lower in the first minutes of the cash session. Stock is down around 25% on the day right now. Source: xStation5
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