US OPEN: Wall Street gains at the start of a new week

• Wall Street indices open slightly higher
• US100 returns above 18,000 pts
• Earnings reports from Berkshire Hathaway, Domino's Pizza and Fidelity National Information Services

Wall Street indices launched the first trading session of a new week slightly higher. S&P 500 and Dow Jones opened 0.1% higher, Nasdaq gained around 0.3% while small-cap Russell 2000 dropped 0.3%. Economic calendar for today is slight - traders will be offered new home sales data for January at 3:00 pm GMT and Dallas Fed manufacturing index for February at 3:30 pm GMT.

Source: xStation5

Taking a look at Nasdaq-100 futures (US100) chart at H1 interval, we can see that price broke to fresh all-time highs at the end of the last week, setting new intraday records. However, bulls failed to hold onto those gains and the index pulled back to the 17,935 pts support zone. Declines were halted there and an attempt to recover from recent losses can be observed today. US100 climbed back above 18,000 pts mark and is attempting to clear 18,015 pts swing area. If buyers manage to break above it, the next target can be found in the 18,060 pts area.

Company News

Berkshire Hathaway (BRKB.US) trades higher after reporting Q4earnings over the weekend. Company reported an almost-28% YoY increase in operating earnings, to $8.48 billion, while cash position increased from $157.2 billion at the end-Q3 to $167.6 billion at the end-Q4. However, company's CEO and chairman Warren Buffett said that days of very strong gains generated by Berkshire are over, and he now expects Berkshire Hathaway to do 'slightly better' than the average US corporation, although with less risk. We wrote about Berkshire Hathaway earnings in more detail here.

Alcoa (AA.US), US aluminum producer, trades lower after the company announced a $2.2 billion all-stock buyout proposal for Alumina, partner in Australian joint venture. Alumina's only asset is 40% stake in JV with Alcoa, and acquiring the partner will allow US company to increase its upstream exposure and simplify operations.

Shares of Alcoa (AA.US) are trading lower after company disclosed buyout proposal for Alumina. Stock is breaking below the $26.50 support zone today. Source: xStation5

Fidelity National Information Services (FIS.US) reported Q4 revenue at $2.51 billion, slightly below $2.52 billion expected. EPS of $0.94 was also slightly lower than expected ($0.95). Company expects Q1 revenue to reach $2.43-2.45 billion (exp. $2.46 billion) and Q1 ESPS of $0.94-0.97 (exp. $1.01). For the full-2024 company expects revenue to reach $10.10 billion (exp. $10.13 billion) and EPS to reach $4.66-4.76 (exp. $4.61).

Domino's Pizza (DPZ.US) reported 4.9% global retail sales growth in fiscal-Q4 2023 and 5.4% growth in full fiscal-2023. US same store sales were 2.8% YoY higher in fiscal-Q4 and 1.6% higher in full fiscal-2023.  International same store sales increased just 0.1% YoY in fiscal-Q4 and were 1.7% in full-year. Income from operations increased 3.4% YoY in fiscal in fiscal-Q4 and 6.7% in full-year. Company's board authorized a 25% increase in dividend to $1.51 per share as well as a $1 billion for additional share repurchases.

Analysts actions

• Moderna (MRNA.US) downgraded to 'reduce' at HSBC. Price target set at $86.00
• Gap (GAP.US) upgraded to 'neutral' at JPMorgan. Price target set at $20.00

Domino's Pizza (DPZ.US) launched new week's trading with a big bullish price gap. The stock is trading above the $425 resistance zone and trades at the highest level since the beginning of 2022. Source: xStation5