- Wall Street gains, indices head towards yearly highs
- Yields on 10-year bonds drop to 4.25%
- Dollar slows down declines and remains in consolidation
- Foot Locker (FL.US) publishes better quarterly results
- CrowdStrike Holdings (CRWD.US) results beat analyst estimates
Wall Street opens Wednesday's session higher. The US500 index is approaching this year's highs, growing by 0.30% today to 4590 points. A similar increase can be observed in the US100. The big tech index gains 0.30% and is already at the highest level this year, after breaking through 16050 points. The gains are supported by the outflow of capital from safe assets. Investors are no longer pricing in interest rate hikes in the USA. As a result, bond yields are falling, crossing the next support levels. Today, the yields on 10-year bonds are quoted around 4.25%, the lowest since mid-September this year. The US dollar consolidates at low levels, and today's session has so far not brought much volatility to this currency.
US500
Futures on the S&P 500 (US500) are quoted today 0.30% higher around 4580 points. The good sentiment is extended, and the demand for risky assets pushes the quotations to new local highs. The index, after breaking through the 4500 point level, is heading towards the next limit, which is this year's high at 4630 points. These two levels are worth monitoring at the moment to determine the further direction. Source: xStation 5
Companies from US500 weighted by capitalization. Today's gains are dominated by Tesla (TSLA.US) and Nvidia (NVDA.US). Source: xStation 5
Company News:
Foot Locker (FL.US) gains as much as 16% after the company exceeded third-quarter earnings and sales expectations. The company narrowed its full-year forecast, expecting a smaller sales drop and same-store sales decline than previously forecasted. However, it lowered the high end of its adjusted earnings guidance. Foot Locker reported net income of $28 million for the quarter, with total revenue falling about 8.6% year-over-year. Same-store sales dropped by 8%, slightly better than analysts' expectations. Digital sales decreased by 5.6% year-over-year, but excluding Eastbay, they rose 0.4%. Foot Locker is also expanding into new markets, including India, through a licensing agreement.
Source: xStation 5
CrowdStrike Holdings (CRWD.US) gains 8% after the company also reported third-quarter earnings and revenue that surpassed analyst expectations, with notable strength in cloud security, identity protection, and log management. The company's adjusted earnings rose to 82 cents per share, a 105% increase, and revenue grew 35% to $786 million. Annual recurring revenue (ARR), a crucial metric for the subscription services growth, increased by 35% to $3.15 billion, slightly above analyst forecasts. For the current quarter, CrowdStrike expects revenue to be around $838.3 million, and for fiscal 2024, it anticipates flat to modestly higher net ARR from new customers.
Source: xStation 5
GameStop (GME.US) jumps 12%, putting the stock on track to extend gains for a second consecutive session, ahead of its third-quarter results next week.
Workday (WDAY.US) rises as much as 8.5% after the application software company reported third-quarter results that beat expectations and raised its full-year forecast for subscription revenue
