US OPEN: Uber jumps in pre-session trade on profit promise

• Wall Street futures point to a weaker opening

• US30 swings within downward channel

• Uber (UBER.US) expects to achieve profitability in Q4 2020

Wall Street indices are moving lower ahead of Friday’s session open. Superb jobs report that showed 225k increase in US employment in January (exp. 165k) did not lift the pressure off equities. Actually, Wall Street futures deepened declines after the release of data. Uber Technologies and Activision Blizzard are on watch today following earnings releases.

Dow Jones (US30) pulled back from an all-time high and started to trade within a downward channel. The index bounced off the lower limit of the channel earlier today. A point to note is that the lower limit of channel coincides with the lower limit of Overbalance structure (yellow box) and 23.6% Fibo level of recent upward impulse. The index tested the upper limit of the channel ahead of session open but failed to break above. The near-term levels to watch are determined by limits of the channel - 29290 pts (resistance) and 29150 pts (support). Source: xStation5

Uber Technologies (UBER.US) published quarterly results for Q4 2019 yesterday after close of the session. The company booked a net loss of $894.55 million, more or less in line with estimates. Revenue of $3.73 billion was 0.8% higher than expected. Adjusted loss per share of $0.523 turned out to be 5% smaller than expected. The report was well received as sales grew over 35% YoY and net loss remained unchanged. Moreover, the US ride-hailing company said that it expects to achieve profitability on an adjusted basis in the final quarter of 2020. The release led to numerous price upgrades for the stock:

• Susquenhanna raised PT from $31 to $42

• JMP Securities raised PT from $54 to $56

• Canaccord raised PT from $50 to $55

• BofA raised PT from $47 to $49

Share price of Uber Technologies (UBER.US) rose during IPO last year but dropped shortly after. The stock still has not recovered from a major decline started at the end of June 2019. Price recently pulled back from the 61.8% retracement of the move but declines were halted near $37 handle yesterday. Pre-session trading hints that the stock may open at a 6-month high near $40 handle. If this is the case, the aforementioned retracement level will serve as a support. Source: xStation5

Activision Blizzard (ATVI.US) also reported Q4 earnings after the session closed yesterday. The US video game developer reported adjusted EPS of $1.23 against an expected $1.19. Revenue of $2.71 billion was also higher than expected. Number of monthly active users stood at 409 million in Q4 2019. Solid performance can be ascribed to strong sales of Call of Duty franchise. However, the company issued a guidance for the current quarter that was slightly weaker than market expectations.

Intercontinental Exchange (ICE.US) said that it will not explore options for tying-up with Ebay (EBAY.US). The decision came after ICE CEO, Jeff Sprecher, failed to persuade investors why the company sees the merger as an opportunity. Ebay was not interested in the deal as well.

Activision Blizzard (ATVI.US) is trading way off it's all-time high at $84.40. The is poised to launch today’s session higher and may be set to test recent high at 50% Fibo level ($62.20). However, if this is not enough for the bulls, next resistance in line can be found at $65 handle. Source: xStation5