- Wall Street opens little changed
- US500 holds above 5,000 pts
- Earnings reports from Arm Holdings, Monolithic Power and Harley-Davidson
Wall Street indices launched today's trading little changed. S&P 500 traded flat, while Dow Jones, Nasdaq and Russell 2000 gained around 0.1%. S&P 500 futures (US500) climbed above the 5,000 pts mark yesterday, but cash index did not manage to break above this barrier yet. However, this may happen today given that the cash index trades near 4,995 pts at session launch.
Source: xStation5
S&P 500 futures (US500) continue to trade above 5,000 pts mark. However, the upward move on the index slowed after reaching the 161.8% exterior retracement of the brief downward correction that took place at the turn of January and February 2024. Index trades in uncharted water and determining next potential resistance levels becomes increasingly difficult. Should bulls remain in control and the index continues to move higher, the first potential short-term resistance level can be found at 5,034 pts - the 161.8% exterior retracement of the February 2-5, 2024 pullback.
Company News
Arm Holdings (ARM.US) rallies after reporting better-than-expected fiscal-Q3 2024 results (calendar Q4 2023). Company reported total revenue at $824 million (exp. $760 million) and annualized contract value of $1.16 billion (exp. $1.11 billion). Adjusted gross profit reached $797 million (exp. $746.1 million) while adjusted operating income came in at $338 million (exp. $275 million). Adjusted EPS of $0.29 was also higher than $0.25 expected. Company expects fiscal-Q4 2024 revenue to reach $850-900 million (exp. $778.5 million) and adjusted EPS to reach $0.28-0.32 (exp $0.21).
Monolithic Power Systems (MPWR.US) trades higher after reporting fourth quarter earnings. Company reported a 1.3% YoY drop in revenue to $454.0 million (exp. 452.5 million) and adjusted gross margin of 55.7%, in-line with expectations but below 58.5% reported a year ago. Adjusted EPS came in at $2.88 (exp. $2.85) and was lower than $3.17 reported a year ago. Quarterly dividend was increased by 25% to $1.25 per share. Company expects Q1 revenue to reach $437-457 million (exp. $436 million) and adjusted gross margin of 55.4-56.0% (exp. 55.8%).
Harley-Davidson (HOG.US) reported Q4 2023 earnings today before session open. Company reported revenue at $1.05 billion (exp. $1.11 billion), driven by $792 million in sales generated by the motorcycle division (exp. $880 million). Motorcycle shipments dropped 13% to 29.5 thousand units. EPS came in at $0.18, lower than $0.28 expected and significantly below $0.59 expected. Harley-Davidson expects motorcycle segment revenue growth to reach -9 - 0% and capital expenditures to reach $225-250 million (exp. $242 million).
Analysts' actions
- GoPro (GPRO.US) downgraded to 'neutral' at Wedbush. Price target set at $2.00
- ZoomInfo (ZI.US) downgraded to 'sell' at Citi. Price target set at $13.00
Monolithic Power Systems (MPWR.US) launched today's trading higher, following the release of better-than-expected Q4 earnings. Stock opened at new record highs and rallied above $700 in the first minutes of trade. Source: xStation5
