- Wall Street indices open more or less flat
- US500 tests 50-session moving average
- Viking Therapeutics surges 17% after Q2 earnings
- Edward Lifesciences slumps 25% after Q2 earnings
Wall Street indices launched today's cash session more or less flat compared to yesterday's closing levels. S&P 500, Dow Jones and Nasdaq opened 0.05-0.10% higher, while small-cap Russell 2000 added 0.3% at session launch. This comes after yesterday's steep sell-off triggered by disappointing earnings releases from Alphabet and Tesla.
US GDP report released earlier today turned out to be a positive surprise, with annualized growth accelerating from 1.4% in Q1 2024 to 2.8% in Q2 2024, while analysts expected an acceleration to 2.0%. While the report triggered an uptick on US index futures, it was not enough to trigger a large move. Traders are weighing solid data from the US economy against risk of smaller or slower easing from Fed.
Source: xStation5
Wall Street indices are not allowed to catch a breath after yesterday's sell-off, with major US benchmarks failing to launch a recovery move. Taking a look at S&P 500 futures chart (US500) at D1 interval, we can see the index trade lower today, but the magnitude of the move is nowhere near that from yesterday. Index is making a break below the 50-session moving average (green line) today. However, according to Overbalance methodology, as long as the price stays above 5,350 pts area, where the lower limit of market geometry and 23.6% retracement can be found, the main trend remains bullish.
Company News
Viking Therapeutics (VKTX.US) launched today's cash session with a big bullish price gap, following release of Q2 earnings report. Company reported a $0.20 loss per share, less than $0.27 loss expected by analysts and slightly more than $0.19 loss reported a year ago. Drug developer is still in early-stage and continues to report $0 quarterly revenue. However, company said that its weight-loss drug advanced to late-stage trials and it is driving a spike in Viking's share price.
ServiceNow (NOW.US) jumped at the launch of today's cash trading, responding to Q2 earnings release. Company reported adjusted revenue at $2.64 billion (exp. $2.61 billion), with subscription revenue reaching $2.54 billion (exp. $2.53 billion). Adjusted gross profit of $2.17 billion also turned out to be higher than $2.15 billion expected. Remaining performance obligation was reported at $18.6 billion (exp. $17.6 billion), while current performance obligation was reported at $8.78 billion (exp. $8.68 billion). Company expects Q3 subscription revenue at $2.66-2.67 billion (exp. $2.68), while full-year forecast calls for 2024 subscription revenue of $10.58-10.59 billion, up from previous guidance of $10.56-10.58 billion.
Viking Therapeutics (VKTX.US) launched today's trading with a big bullish price gap. Stock rallies after Q2 earnings releases and is trading around 17% higher on the day. Bulls are now testing $60 resistance zone. Source: xStation5
West Pharmaceutical Services (WST.US) takes a hit after cutting full-year forecasts. Company reported 6.9% YoY drop in Q2 net sales to $702.1 million (exp. $729.3 million), with Proprietary Products net sales dropping 9.4% YoY to $559.7 million (exp. $592.8 million). Organic sales were 5.9% YoY lower. Adjusted operating income plunged 32% YoY to $126.4 million (exp. $155.1 million) and adjusted EPS was reported at $1.52, lower than $1.74 expected and $2.11 reported a year ago. Company lowered full-year net sales forecast from $3.00-3.03 billion to $2.87-2.90 billion) and adjusted EPS forecast from $7.63-7.88 to $6.35-6.65.
Edwards Lifesciences (EW.US) slumped after reporting a big miss in Q2 revenue. Company reported 9.4% YoY drop in revenue to $1.39 billion (exp. $1.65 billion). However, gross margin unexpectedly improved from 77.6% a year ago to 79.4% now (exp. 76.6%). Adjusted EPS of $0.70 also turned out to be higher than $0.66 reported a year ago and $0.69 expected by analysts for this quarter. Company expects Q3 sales to reach $1.56-1.64 billion (exp. $1.62 billion) while Q3 adjusted EPS is seen at $0.67-0.71 (exp. $0.69).
Edwards Lifesciences (EW.US) slumped after big Q2 sales miss. Company launched today's trading around 25% lower and trades at the lowest levels since November 2023. Source: xStation5
