US OPEN: Wall Street try to maintain bullish momentum. Amazon rise, GME crash

• Wall Street has been trying to bounce back since the start of the session, with increases led by the US100, which was trading yesterday at its weakest session since April
• US500 is trading flat and struggling to maintain momentum
• Claims surprised with a very large increase, the market is reassured that the Fed will keep rates unchanged
• Euphoria on Carvana (CVNA.US) shares after company raised forecasts for the current quarter 
• Powerful 20% sell-off in GameStop (GME.US) shares after weak sales and firing of CEO
• Smartsheet (SMAR.US) shares of rival Gitlab lose 19% after results
• Tesla (TSLA.US) shares at highest since November 2022, market expects higher sales amid lower Model 3 prices - positive news of €4.5 billion investment in factory in Spain (Valencia)
• Amazon shares (AMZN.US) with 3% rally - the highest from all BigTech companies

Thursday's session on Wall Street began in a mixed mood, very quickly the Nasdaq (US100) began to lead the increases. The main macro publication of the day was, of course, claims. A very large increase in claims for unemployment benefits could mean that the unemployed in the US economy is dynamically increasing, however, the drop in continuing claims reflects still strong employment. After the reading, the market reassured itself that rates are unlikely to be raised in June. The potential economic slowdown still remains a mystery to the markets, but the uncertain future is balanced by euphoria on AI and tech stocks. Goldman Sachs President, Waldron told that recession in US may not happen but financial enviroment will be tougher.

• US claims: 261k Expected: 235k Previously: 232k.
• Continuing claims: 1757k Expected: 1802k Previously: 1795k

Stocks from the S&P 500 index categorized by sector and industry. Size represents market capitalization. The best performing sectors are e-commerce, software and semiconductors. Nvidia (NVDA.US) shares are rebounding. Source: xStation5

The market rates keeping rates unchanged with a 70% probability, yesterday the odds were lower but just a week ago they were over 80%. Source: CME Group, FedWatch

S&P 500 (US500) contracts are slipping below the SMA100 and SMA200 on the M30 interval, indicating weakening upward momentum. Source: xStation 

Company news:

• Tesla (TSLA.US) is extending yesterday's gains in light of forecasts of higher sales, fueled by lower prices for its most popular models lowered by EV tax credits. Reuters indicated that the company is considering building a €4.5 billion gigafactory in Spain (Valencia). Yesterday there was also news of Musk's negotiations with Mongolia's prime minister
• Carvana (CVNA.US) - the used car company expects a better current quarter and estimates EBITDA of $50 million indirectly due to its cost-cutting policy
• GameStop (GME.US) shares lose as the company reported disappointingly low sales and announced the firing of its current CEO. Ryan Cohen becomes CEO again. The company's sales in the US and Canada fell more than 16% and 18%, respectively. Revenues were $1.24 billion vs. $1.38 billion in Q1 2022 and net loss narrowed to $0.17 ($50.5 million) per share vs. $0.52 a year earlier ($157.9 million)

Smartsheet Company (SMAR.US) is trading at deep lows today as market expectations after Gitlab's euphoric Q1 report were inflated. The company shared cautious forecasts and conveyed that it intends to implement AI into its services for developers. Overall, the company's report showed a sizable improvement revenue rose 31% y/y to $219.9 million. Subscription revenue was $206 million, up 33% y/y - but professional services grew by just 7%. Net loss was $29.9 million vs. $70.5 million in Q1 2022 ($0.23 vs. $0.55). Improved free cash flow was $31.3 million vs. negative $9.1 million in Q1 2022.
The number of total clients with contract values of $100,000 or more increased to 1,569 (42% y/y), in the $50,000 to $100,000 range by 33% (to 3,343), in the $0 to $5,000 range by 16% y/y (18,483). The company's projections for Q2 include:

• Revenues of $228 million to $231 million (up 22 - 24% y/y)
• Net income per share (non-GAAP) of $0.07 to $0.08

Smartsheet (SMAR.US) shares, D1 interval. The company's shares are down to early May levels and slipping below the SMA200. We can see a bearish 'crossover' on the MACD. Source: xStation5