- Wall Street indices opened lower
- Dow Jones drops below short-term trendline
- Google consider dropping Broadcom as AI chip supplier
Wall Street indices launched today's trading lower, adding to yesterday's declines. Unexpected hawkishness of Fed's forecasts is driving risk-aversion in the markets. Nasdaq and Russell 2000 traded around 0.9% lower at session launch, S&P 500 dropped 0.7% and Dow Jones moved 0.5% lower.
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Dow Jones futures (US30) are pulling back today, along with other major US indices. Taking a look at the US30 chart at D1 interval, we can see that the index is making a break below the short-term upward trendline today. This comes a few days after the index failed to break above the resistance zone marked with 78.6% retracement of the downward move launched at the beginning of 2022. Today's declines on stock market indices are driven by yesterday's FOMC meeting and, more precisely, by hawkish economic projections. Should bears remain in control and the index continues to move lower, the 34,150 pts swing level could be the first target. However, the more important support can be found 1% lower, at 61.8% retracement.
Company News
Broadcom (AVGO.US) launched today's trading lower following a report from The Information. Report said that executives at Alphabet's Google are considering dropping Broadcom as a supplier of AI chips. Chips from Broadcom could be dropped by Google as early as in 2027. Report also hinted that Marvell Technologies (MRVL.US) could be a replacement for Broadcom's products. Marvell gains at the start of today's trading.
FactSet Research Systems (FDS.US) launched today's trading slightly lower after reporting for fiscal-Q4 2023 (calendar June - August 2023). Company reported a 7.3% YoY jump in revenue, to $535.8 million (exp. 535 million), and a drop in adjusted EPS from $3.13 to $2.93 (exp. $3.51). Client count increased 5.1% YoY to 7 921 (exp. 7 895) while user count increased 5.6% YoY to 189 972 (exp. 191 624). Company expects adjusted EPS in full fiscal-2024 to reach $15.65-16.15 (exp. $16.66) and revenue to reach $2.21-2.23 billion (exp. $2.23 billion).
Warner Bros (WBD.US), Paramount (PARA.US) as well as other US entertainment companies are trading slightly higher today. This comes in response to media reports saying that movie studies are inching closer to an agreement with writers to end a months-long strike.
Broadcom (AVGO.US) launched today's trading lower. Stock launched today's session below 815.00 support zone and below the 800 mark for the first time since early-June 2023. Key question now is whether bulls manage to push the stock back above the aforementioned 815.00 zone which acts as the lower limit of the trading range. If they fail, stock may continue to drop and the textbook range of the downside breakout can be found at 695.00. Source: xStation5
