US OPEN: Wall Street opens higher after dovish ADP data

• Wall Street opens higher led by Russell 2000
• US100 retreats below 16,000 pts
• Fiscal-Q3 results from MongoDB, Yext, SentinelOne and Box

Wall Street indices launched today's trading higher as a weaker-than-expected ADP report on US employment added to arguments for Fed not raise rates anymore. S&P 500 traded 0.5% higher at the opening, Dow Jones added 0.4%, Nasdaq gained 0.6% and small-cap Russell 2000 jumped 1%.

Source: xStation5

Taking a look at Nasdaq-100 futures (US100) chart at H1 interval, we can see that the index tested 15,940 pts support zone earlier today and strongly bounced off it following release of ADP data for November. Index has subsequently jumped above the psychological 16,000 pts handle, but the advance was halted at the 16,035 pts swing area, when the cash trading on Wall Street began. A key near-term support zone to watch in case pullback deepens are the aforementioned 15,940 pts area as well as the 15,865 pts area.

Company News

MongoDB (MDB.US) trades lower at the start of today's cash session, following release of fiscal-Q3 2024 earnings (calendar August-October 2023). Company reported 30% YoY jump in fiscal-Q3 revenue, to $432.9 million (exp. $403.7 million), as well as adjusted EPS  of $0.96 (exp. $0.51). Cash position declined 52% YoY to $477.7 million. Company expects full-year revenue to reach $1.65-1.66 billion, up from previous guidance of $1.60-1.61 billion), as well as adjusted EPS at $2.89-2.91, up from previous guidance of $2.27-2.35.

Box (BOX.US) drops after release of fiscal-Q3 2024 earnings (calendar August-October 2023). Company reported 4.6% YoY increase in fiscal-Q3 revenue, to $261.5 million (exp. $262.1 million), as well as adjusted EPS at $0.36 (exp. $0.38). Billings came in at $253.7 million (exp. $257.9 million). Adjusted operating margin reached 24.7% in fiscal-Q3 (exp. $25.5%). Apart from slightly disappointing results, company also decided to cut its full-year outlook. Box still expects full-year revenue to reach $1.04 billion, but adjusted EPS is now seen at $1.42-1.43, down from previous forecast of $1.46-1.50.

MongoDB (MDB.US) is pulling back today in spite of a boost to full-year guidance. Stock tested the resistance zone ranging below $450 mark last week but failed to break above. In case declines deepen, a recently-broken $390 price zone may act as the first important support. Source: xStation5

Yext (YEXT.US) slumps today after reporting fiscal-Q3 2024 earnings (calendar August-October 2023). Company reported 1.9% YoY increase in fiscal-Q3 revenue, to $101.2 million (exp. $102 million), and an adjusted EPS of $0.09 (exp. $0.07). Gross margin for the period reached 78.2% and was in-line with market expectations. Yext issued a mixed new full-year guidance, with revenue forecast being lower and earnings forecast increasing. Company expects full-year revenue to reach $403.2-403.7 million ($405-407 million previously) and adjusted EPS of $0.31-0.32 ($0.29-0.30 previously).

SentinelOne (S.US) surges after reporting fiscal-Q3 2024 results (calendar August-October 2023). US cybersecurity company reported Q3 revenue at $164.2 million (exp. $156 million), adjusted gross margin at 79% (exp. 76%) and adjusted loss per share of $0.03 (exp. $0.08). SentinelOne expects fiscal-Q4 revenue to reach $169 million ($166.5 million), adjusted gross margin to reach 77.5% (exp. 76%) and adjusted operating margin to come in at -14% (exp. -19%).

Analysts' actions

• Toast (TOST.US) rated "neutral" at Redburn. Price target set at $17.45
• PayPal Holdings (PYPL.US) downgraded to "neutral" at Bank of America. Price target set at $66.00
• Capital One (COF.US) upgraded to "buy" at Bank of America. Price target set at $129.00

SentintelOne (S.US) surges today, on the back of solid fiscal-Q3 earnings report. Stock launched today's trading with a big bullish price gap and broke above the $21 resistance zone in the process. The next major resistance zone to watch can be found in the $29.00 area. Source: xStation5