- Wall Street indices open higher
- US100 climbs back above 18,000 pts mark
- Earnings reports from CrowdStrike, FootLocker, ChargePoint and Nordstrom
- Powell reiterates that Fed is in no hurry to cut rates
Wall Street indices launched today's trading higher, erasing a big part of yesterday's sell-off. S&P 500 opened 0.7% higher, Dow Jones jumped 0.4% at session launch, while Nasdaq rallied 1%. Small-cap Russell 2000 also traded around 1% at session opening today.
Fed Chair Powell will appear before the House Financial Services Committee today at 3:00 pm GMT, for the first day of his semiannual testimonies. Text of the speech was already released at 1:30 pm GMT today, and it included no surprises - Powell reiterated that the Fed is in no hurry to cut rates as it still do not have enough confidence in inflation. Having said that, the only source of potential volatility during the event may come from lawmakers' questions.
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Source: xStation5
Nasdaq-100 futures (US100) took a hit yesterday amid weakness in large tech. However, the index has recovered a large part of yesterday's losses already. Taking a look at US100 chart at H1 interval, we can see that yesterday's sell-off was halted at the 17,850 pts support zone and the index started to recover later on. Price broke back above 18,000 pts mark and managed to also break through the resistance zone marked with 200-session moving average in the 18,050 pts area. Index is testing the 18,120 pts swing area, marked with previous price reactions and 50-hour moving average, which is the only potential resistance level to watch ahead of record highs in the 18,375 pts area.
Company News
CrowdStrike (CRWD.US) rallies today after reporting fiscal-Q4 2024 results (November 2023 - January 2024 period). Company reported revenue at $845.3 million (exp. $839.6 million), driven by subscription revenue of $795.9 million (exp. $789.1 million). Annual recurring revenue was reported at $3.44 billion (exp. $3.39 billion), with $281.9 million in net new annual recurring revenue (exp. $241.2 million). Adjusted EPS came in at $0.95, while market expected $0.83. Company expects fiscal-Q1 2025 revenue of $902.2-905.8 million (exp. 898.8 million) and adjusted EPS of $0.89-0.90 (exp. $0.82). Forecasts for full fiscal-2025 point to revenue of $3.92-3.99 billion (exp. $3.94 billion) and adjusted EPS of $3.77-3.97 (exp. $3.76).
Foot Locker (FL.US) drops after reporting fiscal-Q4 2024 results (3 months ended on February 3, 2024). Company reported 2% YoY increase in sales to $2.38 billion (exp. $2.26 billion), with comparable sales dropping 0.7% (exp. -7.1%). Loss per share was reported at $4.13, compared to $0.20 profit last year. However, on an adjusted basis, Foot Locker reported EPS at $0.38 (exp. 0.30). Number of stores declined 7% YoY to 2,523 (exp. 2,515). Company expects full-year fiscal-2025 sales to be from 1% lower to 1% higher compared to fiscal-2024. However, comparable sales are seen growing 1-3%. Full-year fiscal-2025 adjusted EPS is expected at $1.50-1.70 (exp. $1.91).
Foot Locker (FL.US) plunged following release of fiscal-Q4 results. Stock launched today's trading over 10% lower and is trading below the $31.00 support zone. A near-term support zone to watch can be found in the $27.00 area, marked with 23.6% retracement of the downward impulse launched in May 2021. Source: xStation5
Nordstrom (JWN.US) drops after reporting fiscal-Q4 2024 results (3 months ended on February 3, 2024). Company reported 2.3% YoY increase in total revenue to $4.42 billion (exp. $4.4 billion), with net sales increasing 2.2% YoY to 4.29 billion (exp. $4.33 billion). Adjusted EBITDA increased 20% YoY to $386 million ($372 million) while gross margin was reported at 34.4% (exp. 35.1%). Adjusted EPS came in at $0.96 (exp. $0.89). Company expects fiscal-2025 revenue to be from 2% lower to 1% higher, while comparable sales are seen between 1% lower and 2% higher. Adjusted EPS is forecasted at $1.65-2.05.
ChargePoint (CHPT.US) drops after reporting fiscal-Q4 2024 results (November 2023 - January 2024 period). Company reported a 24% YoY drop in revenue to $115.8 million (exp. $117.7 million). Net loss was reported at $94.7 and was 21% YoY deeper, while loss per share of $0.23 was unchanged from a year ago. Company expects fiscal-Q1 revenue to reach $100-110 million, significantly below $128 million expected by the market. ChargePoint said that it is still committed to achieve positive adjusted EBITDA in fiscal-Q4 2025 (November 2024 - January 2025 period)
Nordstrom (JWN.US) plunges at a double-digit pace today. Stock launched today's trading below $20.00 support zone after fiscal-2025 profit forecast from the company disappointed. The next major support zone to watch can be found in the $17.00 area. Source: xStation5
