- Wall Street indices open higher
- US30 jumps above 35,500 pts resistance
- Immunogen surges on AbbVie M&A news
Wall Street indices launched today's trading higher. S&P 500, Nasdaq and Russell 2000 traded around 0.1% higher at session launch while Dow Jones was outperformer with an almost 0.5% jump. PCE inflation data for October released earlier today came in-line with expectations and had little impact on the markets. However, USD gain and indices saw some weakness after hawkish comments from Fed Daly and Fed Williams. Daly said that it is still too early to know if Fed is done rising rates, while Williams said that Fed may hike again if inflation persists.
Source: xStation5
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Open account Try demo Download mobile app Download mobile appDow Jones futures (US30) climbed above the 35,500 pts resistance zone this week. However, traders should be aware of a potential false breakout. This was the case back at the turn of July and August when the index managed to break above the aforementioned 35,500 pts resistance but has reversed shortly afterward and an over-9% correction was launched. On the other hand, should bulls managed to hold onto gains and definitely clear the 35,500 pts area, there are no more major resistance levels ahead of the all-time highs in the 36,800 pts area. The 36,250 pts swing zone may offer some short-term resistance.
Company News
Snowflake (SNOW.US) jumps after US cloud-based company reported better-than-expected fiscal-Q3 2024 results (calendar August-October 2023 period). Company reported a 32% YoY jump in revenue, to $734.2 million (exp. $713.8 million), driven by a 34% YoY jump in product revenue. Adjusted gross margin of 75% was higher than 72.4% expected but in-line with a year ago result. Adjusted diluted EPS came in at $0.25, above $0.16 expected and up from $0.11 a year ago. Snowflake boosted its 2024 forecast and now expects full-year product revenue to reach $2.65 billion, up from a previous forecast of $2.60 billion.
Pure Storage (PSTG.US) slumps today after reporting fiscal-Q3 2024 results (calendar quarter ended on November 5, 2023). Company reported 13% YoY increase in revenue, to $762.8 million (exp. $760.6 million), as well as adjusted EPS increase from $0.31 a year ago to $0.50 now (exp. $0.40). Adjusted operating income was 58% YoY higher at $169.1 million (exp. $135.7 million). While fiscal-Q3 results were better-than-expected, company disappointed with outlook. Revenue in full fiscal-2024 is expected at $2.82 billion (exp. $2.96 billion), while adjusted income is seen at $450 million (exp. $464.9 million).
Immunogen (IMGN.US) rallies today after AbbVie (ABBV.US) agreed to buy company for $31.26 per share. Deal values company at $10.1 billion and will be paid in for with cash. AbbVie expects the acquisition to have a $0.13 and $0.16 negative impact on adjusted EPS in 2024 and 2025, respectively, and be EPS neutral in 2026.
Nutanix (NTNX.US) gains after releasing fiscal-Q1 2024 earnings report (calendar August-October 2023 period). Company reported 18% YoY increase in revenue, to $511.1 million, driven by 19% YoY jump in subscription revenue. Adjusted gross margin at 85.9% was higher than 83.4% expected. Annual contract value billings increased 24% YoY to $287.2 million (exp. $266.6 million). Company expect revenue in full fiscal-2024 to reach $2.10-2.13 billion, up from previous forecast of $2.09-2.12 billion) and annual contract value billings to come in at $1.08-1.10 billion, in-line with previous forecast.
Analysts' actions
- HP Enterprise (HPE.US) upgraded to 'equal-weight' at Morgan Stanley. Price target set at $16.00
- Snap (SNAP.US) upgraded to 'buy' at Jefferies. Price target set at $16.00
- Pinterest (PINS.US) upgraded to 'buy' at Jefferies. Price target set at $41.00
Snowflake (SNOW.US) launched today's trading with a big bullish price gap. Stock is up over 8% on the day and is testing the $190 resistance zone, that serves as the upper limit of the trading range. A clear break above could pave the way for a bigger rally with textbook range of the breakout from trading range suggest a possibility of a move above $230 per share. Source: xStation5
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