- Wall Street indices launched today's trading higher
- Softer-than-expected CPI reading provides fuel for rally
- Snap jumps on deal with Amazon
Wall Street indices launched today's trading higher as softer-than-expected US CPI data for October provided more fuel for gains. Headline CPI slowed from 3.7% to 3.2% YoY while market expected a slowdown to 3.3% YoY while core CPI slowed from 4.1 to 4.0% YoY while market expected it to remain unchanged. Markets are now expecting Fed to deliver the first rate cut in June 2024, followed by another one in July 2024.
S&P 500 trades 1.4% higher at session launch, Dow Jones gained 1%, Nasdaq rallied 1.8% and small-cap Russell 2000 surged over 3%.
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Source: xStation5
Nasdaq-100 futures (US100) extend ongoing upward move, with CPI providing more fuel and reason to rally. Taking a look at D1 chart, we can see that gains accelerated following a break above the upper limit of a bearish channel as well as the 15,350 pts resistance zone. A textbook range of the breakout from the channel suggests a possibility to a move as high as 16,320 pts. US100 is trading around 12% above local low from October 26, 2023.
Company News
Beauty Health (SKIN.US) is plummeting following the release of Q3 2023 earnings. Company reported a 9.7% YoY jump in net sales to $97.4 million (exp. $117.2 million) and 45% YoY plunge in adjusted EBITDA to $9.1 million (exp. $21.5 million). Beauty Health reported a loss per share of $0.56, deeper than the $0.03 loss reported a year ago. On top of weak Q3 earnings, company also lowered its full-year net sales forecast from $460-480 million to $385-400 million (exp. $461.3 million)
Fisker (FSR.US) is pulling back after releasing disappointing Q3 2023 earnings report. Company reported revenue at $71.8 million, significantly below $101 million expected. Net loss reached $91.0 million, translating into a loss per share of $0.27. Fisker also admitted that during preparation of the earnings report it has found a material weakness in its internal control over financial reporting.
Snap (SNAP.US) trades higher today following a report from Information. News outlet reported that the company reached a deal with Amazon that will allow Snap user to purchase products directly from Amazon ads in the Snapchat app. Deal is said to only apply to US customers.
Analysts' actions
- Take-Two Interactive (TTWO.US) upgraded to 'buy' at Deutsche Bank. Price target set at $175.00
- Kraft Heinz (KHC.US) upgraded to 'outperform' at Bernstein. Price target set at $40.00
- ON Semiconductor (ON.US) rated 'buy' at Roch MKM. Price target set at $75.00
- New York Community Bancorp (NYCB.US) downgraded to 'underperform' at Wedbush. Price target set at $8.00
Snap (SNAP.US) launched today's trading with a bullish price gap, following the Information report on a deal with Amazon. Stock is testing the $12.50 resistance zone, which acts as the upper limit of the ongoing trading range. Source: xStation5
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