- Wall Street opens higher after US CPI data
- US500 jumps above 5,400 pts
- Oracle at fresh all-time highs after earnings release
Wall Street indices launched today's trading higher, following a dovish release of US CPI data for May. S&P 500 opened 0.8% higher, Dow Jones gained 0.5% at session launch and Nasdaq-100 trades 0.9% higher. Small-cap Russell 2000 was outperformer with an around-2.5% gain.
Headline CPI inflation slowed from 3.4% in April to 3.3% YoY in May (exp. 3.4% YoY), while core measure slowed from 3.6% to 3.4% YoY (exp. 3.5% YoY). While this data can be considered dovish, it unlikely to impact today's Fed decision (7:00 pm BST) - rates will be kept unchanged. However, a lower reading may have impact on how Fed members view rate path in the second half of this year.
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S&P 500 futures (US500) jumped in response to lower-than-expected US CPI inflation reading for May. Index jumped above the 5,400 pts mark for the first time in history and is trading at an all-time highs. The next potential volatility event will come as soon as this evening - FOMC rate decision at 7:00 pm BST. Source: xStation5
Company News
Oracle (ORCL.US) launched today's trading with a big bullish price gap. Stock gains following release of fiscal-Q4 earnings report yesterday after close of Wall Street session. While company has missed revenue and earnings expectations, announcement on partnership with Google and OpenAI supports share price.
Rubrik (RBRK.US) launched today's trading slightly higher after the company reported first earnings after IPO. US cybersecurity company reported 38% YoY jump in fiscal-Q1 revenue to $187.3 million (exp. $171.5 million), driven by $172.2 million in subscription revenue. Company posted a negative free cash flow of $37.1 million and an adjusted loss per share of $1.58 (exp. -$1.84). Company expects full-year fiscal-2025 revenue of $810-824 million (exp. $806 million) and full-year loss per share of $2.25-2.35 (exp. $2.41). In fiscal-Q2 2024 company expects revenue of $195-197 million (exp. $195 million) and loss per share of $0.48-0.50.
Casey's General Stores (CASY.US) gains after reporting fiscal-Q4 results. Company reported 8.2% YoY jump in revenue to $3.60 billion (exp. $3.46 billion), with Fuel revenue jumping 6.5% YoY to $2.28 billion (exp. $2.16 billion). Fuel gross profit increased 15% YoY to $253.6 million (exp. $231 million). Adjusted EBITDA at $224.5 million was 35% year-over-year higher (exp. $190.1 million). EPS improved from $1.49 a year ago to $2.34 now (exp. $1.72). Company said it expects same-store sales to increased 3-5% in fiscal 2025 and comparable margins to fiscal 2024.
Analysts' actions
- Pure Storage (PSTG.US) downgraded to 'equal weight' at Morgan Stanley. Price target set at $60.00
- Ciena Corp (CIEN.US) upgraded to 'overweight' at Morgan Stanley. Price target set at $55.00
- Birkenstock (BIRK.US) downgraded to 'neutral' at Goldman Sachs. Price target set at $58.00
- NextEra Energy (NEE.US) downgraded to 'neutral' at Mizuho Securities. Price target set at $71.00
- Paramount Global (PARA.US) downgraded to 'underweight' at Wells Fargo. Price target set at $9.00
Oracle (ORCL.US) launched today's trading with a big bullish price gap, in response to yesterday's earnings release. Stock is trading at fresh all-time highs. Source: xStation5
