US OPEN: Bullish opening of Thursday session on Wall Street, Expedia gains after a possible takeover by Uber

• Wall Street opens higher on Thursday.
• Expedia Group Inc. higher after the Financial Times reported a possible takeover by Uber Technologies.
• Alcoa Corp shares rise after the company reported third-quarter earnings that surpassed analyst estimates

US equities are set for a higher open, with the  Nasdaq 100 leading gains, up 0.66%. The S&P 500 is higher by 0.4% with Russell 2000 flat. 

In Europe, most indexes are in the green. French CAC40 and Italian ITA 40 are leaders with gains of over 1,2%. German DAX 40 is over 0,7% higher today. British UK100 is in green by only 0.2%. Polish W20 is the worst performing index, down 1,7% today.

Expedia Group Inc. shares gained after the Financial Times reported that ride-hailing major Uber Technologies Inc. has explored a possible takeover deal for the online travel company.  Alcoa Corp shares are currently up after the company reported third-quarter earnings that surpassed analyst estimates. CSX Corp. shares were down more than 4.5%after the company reported disappointing third quarter results.

Current volatility observed on Wall Street. Source: xStation 

The Nasdaq-100 index, represented by the US100 contract, is trading above the support at the 78.6% Fibonacci retracement for 7th consecutive trading day. For upward momentum to continue, the resistance at 20638 must be broken. It is the level of weekly close all-time-high. The key level for bears to gain momentum would first be 78.6% Fibonacci retracement, followed by mid-August highs at 19,917.81.The index has been in an uptrend since late July, forming higher highs and higher lows, but is now facing resistance near weekly high. Both 78.6% Fibo and mid-August highs act as strong support. A break of these levels could quickly bring the 100-day and 50-day SMAs into play.

Currently, the RSI is slowly showing bullish divergence, with confirmation above 65.6 level. The MACD remains tight and suggests potential for high volatility. Additionally, the 50-day SMA has crossed the 100-day SMA with bullish crossover, showing bullish momentum. Source: xStation 5

News:

• Expedia Group Inc. (EXPE.US) shares gained more than 4.5% after the Financial Times reported that ride-hailing major Uber Technologies Inc. has explored a possible takeover deal for the online travel company. The potential acquisition of Expedia, with around $20 billion market cap, would be Uber's largest acquisition to date as it aims to diversify its operations to boost revenues. However, Uber has not officially reached out to the travel website, and there are no ongoing talks between the companies. Uber CEO Dara Khosrowshahi, who served as Expedia's CEO from 2005 to 2017, remains a non-executive director on its board.
• Uber Technologies Inc. (UBER.US) shares fell nearly1.2 percent as the Financial Times reported, citing sources familiar with the matter, that Uber has approached its advisers in recent months about a potential bid for Expedia after being directed by a third party whether such a deal would be possible, though interest is in the early stages. Uber, which started as a ride-hailing company, has expanded its operations to food delivery, train and flight bookings, corporate logistics and advertising, reaching a current market capitalisation of $173 billion. The company has been actively pursuing growth through acquisitions and partnerships, including buying Postmates and Drizly, and entering the freight and logistics business through the acquisition of Transplace.
• Alcoa Corp (AA.US) shares are currently up  0.4%after the company reported third-quarter earnings that surpassed analyst estimates. The Dow Jones Aluminum producer posted adjusted earnings per share of $0.57, significantly beating the analyst consensus of $0.28. Revenue came in at $2.9 billion, slightly below the $2.97 billion estimate but flat compared to the previous quarter. Alcoa's improved performance was primarily driven by a 22% increase in average realized third-party alumina prices and lower raw material costs. The company also benefited from the absence of net income attributable to noncontrolling interest following its acquisition of Alumina Limited. Alcoa maintained its 2024 production outlook for both its Alumina and Aluminum segments and increased its projection for Alumina shipments.
• CSX Corp. (CSX.US) shares were down more than 4.6%after the company reported disappointing third quarter results. The railroad operator posted adjusted earnings per share of $0.46, missing the analyst consensus of $0.48. Revenue came in at $3.62 billion, below estimates of $3.68 billion but up 1% YoY. Despite growth in merchandise and intermodal volumes, along with pricing gains in merchandise, this was partially offset by lower coal revenue due to declining global benchmark prices and reduced fuel surcharges. CSX offered a cautious forecast for the fourth quarter, citing the effects of recent hurricanes on key operational areas. The company now expects revenue to be "down moderately" in the fourth quarter, with a $200 million negative impact due to lower fuel prices and coal.

Other news coming from individual S&P 500 index companies. Source: Bloomberg Financial LP