- Wall Street indices open slightly higher
- US headline and core PCE inflation slows to 2.6% YoY in May
- US2000 outperforms other Wall Street indices today
- Big prices moves on Nike, Accolade and Infinera
Wall Street indices launched today's trading higher - S&P 500 and Nasdaq added 0.1% at session launch, while small-cap Russell 2000 opened 0.6% higher. Dow Jones was a laggard with an almost-0.2% drop at session launch.
US monthly data pack for May was released today at 1:30 pm BST. Attention was mostly on PCE data, which was expected to show slowdown in headline and core measures. Data came in-line with economists' expectations, but still triggered a slight weakening on the USD market. Interestingly, report also triggered a drop on US indices.
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Source: xStation5
Small-cap Russell 2000 is the best performing major Wall Street index today. Taking a look at Russell 2000 futures (US2000) chart at D1 interval, we can see that the index halted recent pullback in the support zone ranging above the 2,000 pts mark. US2000 is trading over 4% above daily lows from June 17, 2024 and at the highest level since June 12, 2024. Index is approaching the 2,100 pts resistance zone, which was tested a number of times recently and can be seen as the lower limit of this year's trading range. A break above this hurdle would pave the way for a test of this year's highs in the 2,160 pts area.
Company News
Nike (NKE.US) is slumping 17% today, reacting to fiscal-Q1 2025 earnings report released yesterday after close of the Wall Street session. Results turned out to be mixed, with company reporting missing sales estimates and beating profit forecasts. However, Nike also decided to cut full-year fiscal-2025 forecast and the downgrade drives market reaction. We have wrote more on Nike's earnings in our earlier post.
Accolade (ACCD.US) slumps over 20% after reporting fiscal-Q1 results. While Q1 results turned out to be a positive surprise, with company reporting bigger jump in revenue and smaller loss per share than expected, full-year forecasts turned out to be a disappointment. Accolade expects full-year fiscal-2025 revenue to reach $460-475 million, down from previous forecast of $480-500 million. Fiscal-Q2 revenue is seen at $104-106 million (exp. $113 million) and fiscal-Q2 EBITDA loss is expected to reach $8-10 million (exp. -$6 million).
Infinera (INFN.US) launched today's trading with a big bullish price gap. The move comes after company announced that it will be acquired by Nokia for $2.3 billion. Acquisition price represents an almost 30% premium over Infinera's closing price yesterday. Transaction is expected to close in the first half of 2025. Nokia wants the acquisition to boost its position in optical networking business.
Analysts' actions
- Digital Realty (DLR.US) upgraded to 'overweight' at JPMorgan. Price target set at $175.00
- Hartford Financial (HIG.US) downgraded to 'neutral' at Citi. Price target set at $114.00
Infinera (INFN.US) launched today's trading with a big bullish price gap after company announced it will be acquired by Nokia. Source: xStation5
