- Wall Street gains slightly at the start of Wednesday's session
- New home sales and U.S. industrial production surprised on the upside
- Retailer Target (TGT.US) shares gain nearly 4% - the company increased margins and reported solid results
- Tesla (TSLA.US) quickly returns to growth despite news of auto cuts in China
- Alibaba Holding (BABA.US) pressured by weakness in Asian indices and lower than exp. JD.com report (JD.US)
- OakTree Capital unveils new position on Ternium (TX.US) shares
- Sell-off in shares of ocean freight company ZIM (ZIM.US) after weak Q2 results.
On Wednesday, US indices rebounded from yesterday's weaker session. U.S. industrial production showed an improvement in growth of 1% m/m vs. 0.3% forecast, and in y/y terms fell just over 0.2% vs. 0.4% previously. Similarly, the new home sales report came in better than expected, and while the readings point to a strong U.S. economy - the market received them quite positively. Strong US new home sales data failed to improve sentiment toward shares of Lennar (LEN.US), DR Horton (DHI.US) in which Buffett's fund, Berkshire Hathaway, unveiled a stake. 
U.S. companies categorized by sector and industry. Size indicates market capitalization. Source: xStation5
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Open real account TRY DEMO Download mobile app Download mobile appThe US500 index is gaining slightly at the beginning of the session - the key short-term resistance seems to be the SMA200 and SMA100 averages, which separate the benchmark from the psychological zone of 4500 points. The MACD is showing quite positive dynamics and is gradually indicating a bullish divergence with the recently cheapening futures. Source: xStation5
Sales at Target declined but the company was able to significantly improve earnings per share and operating margin, which rose powerfully from 1.2% in Q2 2022 to 4.8% in Q2 2023 - thanks to strong US consumers. Source: Target
Steel elements producer Ternium (TX.US) has significantly increased capital value and reduced debt in recent years. As a result, its debt-to-equity ratio is just 5%. OakTree acquired shares at an average price of $40.46. Source: Macrotrends
News
- The shares of ocean freight company ZIM Integrated Shipping (ZIM.US) are losing ground after its Q2 results. Despite similar TEU freight volumes, the company was hurt by lower freight rates. It reported a $213 million loss in Q2, compared to net income of $1.33 billion in Q2 2022. Adjusted EBITDA in Q2 was $275 million giving an 87% year-on-year decline. Q2 revenue was down 62% y/y vs. $1.31 billion in the comparative 2022 quarter. However, management expressed confidence in the business model, a lower-cost LNG-fueled fleet and a strong cash position of more than $3 billion. For the full year, the company's adjusted EBIT loss is expected to be between $100 million and $500 million. TEU freight rate was $1.193 in Q2 (67% year-on-year decline)Target shares rebound
- Tesla (TSLA.US) shares are rebounding quickly although the market's initial reaction was a sell-off on news of another 6% price cuts for its flagship Model X and Model Y in China.
- Agilent Technologies is losing after the science and research company lowered its revenue outlook for the full year. The forecast was lower than analysts' average estimates.
- Cava Group (CAVA.US) gains 10% - The company, which operates in the Mediterranean cuisine restaurant business, expects higher earnings in 2023.
- Coherent (COH.US) shares lose 33% as the semiconductor devices company provided a lower-than-expected financial forecast for the full year
- Target (TGT.US) gains 4% after reporting adjusted earnings per share and margins that beat the average of analysts' estimates. Better financial results offset weaker-than-expected sales, and the retailer lowered full-year sales and profit expectations. Still, Wall Street is taking a positive view of the company's business and valuing its shares higher.
