US OPEN: Coherent surges while Symbotic slumps after earnings

• Wall Street indices open mixed
• Russell 2000 drops below 50-session moving average
• Earnings reports from Eli Lilly, Coherent and Symbotic

Wall Street indices launched today's trading mixed - S&P 500 and Nasdaq gained slightly at session launch, while Dow Jones and small-cap Russell 2000 moved a touch lower. Economic calendar for today is empty and stock traders continue to focus on incoming earnings reports. Coherent (COHR.US) and Symbotic (SYM.US) are examples of stocks, which experience large post-earnings price moves today.

Source: xStation5

Contrary to other major Wall Street indices, small-cap Russell 2000 continues to trade significantly below it's all-time highs. Taking a look at index futures chart (US2000) at D1 interval, we can see that bulls have recently failed to break above the 2,025 pts resistance zone, which marks the upper limit of the ongoing trading range. Index pulled back and is now testing the 1,945 pts swing area. A point to note is that price broke below the 50-session moving average (green line), which often acted as a support or resistance level for the index, and it hints that a deeper pullback may be looming. A near-term support level to watch can be found in the 1,920 pts.

Company News

Eli Lilly (LLY.US) is trading higher following the release of the Q4 2023 earnings report. Company reported a 28% YoY jump in revenue to $9.35 billion (exp. $8.96 billion), driven by sales of Mounjaro, Trulicity and Verzenio drugs. Research & Developments expenses also climbed 28% YoY to $2.56 billion (exp. $2.39 billion). Market, selling and administrative expenses increased 17% YoY to $1.92 billion (exp. $1.86 billion). Adjusted EPS came in at $2.49 (exp. $2.18). Company expects full-year revenue to reach $40.4-41.6 billion (exp. $39.5 billion) and adjusted EPS to reach $12.20-12.70 (exp. $12.56).

Coherent (COHR.US) rallies following releases of fiscal-Q2 2024 earnings (calendar October - December 2023 period). Revenue during the quarter declined 17% YoY to $1.13 billion (exp. $1.12 billion) while loss per share narrowed from $0.58 to $0.38. However, adjusted EPS came in at positive $0.36 and was better than $0.24 expected. Company expects fiscal-Q3 2024 revenue to reach $1.12-1.20 billion (exp. $1.17 billion) and adjusted EPS to reach $0.32-0.52 (exp. $0.37). Full-year fiscal-2024 revenue is expected at $4.55-4.70 billion, up from previous guidance of $4.50-4.70 billion.

Coherent (COHR.US) launched today's trading with a massive bullish price gap. Stock jumped above the $56.50 resistance zone at the opening and reached the highest level since mid-2023. The next potential resistance zone can be found in the $66.00 area. Source: xStation5

Symbotic (SYM.US) slumped at the launch of today's Wall Street cash session in response to fiscal-Q1 2024 earnings (calendar October - December 2023). Company reported revenue at $368.5 million (exp. $369.2 million) and adjusted EBITDA at $14.1 million (exp. $13.9 million). Loss per share came in at $0.02 and was slightly deeper than expected. Company's cash position increased 88% QoQ to $486 million (exp. 369 million). While fiscal-Q1 results were more or less in-line with expectations, Symbotic disappointed with fiscal-Q2 guidance. Company expects fiscal-Q2 revenue at $400-420 million (exp. $405 million) and adjusted EBITDA at $12-15 million (exp. $25.2 million).

Analysts' actions

• Tesla (TSLA.US) downgraded to "neutral" at Daiwa. Price target set at $195.00
• Bristol-Myers Squibb (BMY.US) downgraded to "neutral" at Redburn Atlantic. Price target set at $54.00

Symbotic (SYM.US) slumped at the launch of today's Wall Street cash session. Stock opened near the 200-session moving average (purple line) and is testing recent local lows in the $40.00 area. A break below this area would pave the way for a test of the $37.00 support zone. Source: xStation5