- Wall Street opens higher after yesterday's declines
- S&P 500 futures test 200-hour moving average
- Uber jumps after announcing $7 billion buyback program
- Earnings reports from Lyft, Robinhood Markets and Upstart
Wall Street indices launched today's trading slightly higher, following yesterday's post-CPI slump. S&P 500 gains 0.6%, Dow Jones trades 0.3% higher, Nasdaq jumps 0.8% and small-cap Russell 2000 rallies 1.5%.
Economic calendar for the US session today is empty, with no noteworthy macro releases scheduled. However, earnings continue to trigger market moves on individual stocks. Upstart Holdings, Robinhood Markets and Lyft are stock that are experiencing significant post-earnings share price moves today.
Source: xStation5
S&P 500 futures (US500) plunged yesterday following higher-than-expected US CPI inflation reading for January. Sell-off was halted at the 61.8% retracement of the upward impulse launched at the end of January 2024 and the index began to recover afterward. Index climbed back above the 50% retracement and reached an important short-term resistance zone ranging in the 4,990 pts area. This zone is marked with 38.2% retracement as well as 200-hour moving average (purple line). A break above would hint that it was just a false breakout below the moving average just as was the case at the turn of January and February (orange circle), and may set the index on the way to return to recent all-time highs in the 5,065 pts area.
Company News
Lyft (LYFT.US) rallies today following the release of Q4 earnings yesterday after the close of market session. Gross booking came in at $3.72 billion (exp. $3.67 billion) while revenue increased 4% YoY to $1.22 billion (exp. $1.22 billion). Adjusted EBITDA came in at $66.6 million (exp. $56 million) while adjusted net income reached $71.1 million (exp. $23.5 million). Number of active riders increased 10% YoY to 22.4 million, while the number of rides reached 190.8 million (184 million). Company expects Q1 gross bookings to reach about $3.5-3.6 billion and adjusted EBITDA to come in at $50-55 million. Stock has initially rallied over 60% in the after-hours trading as the company said that it expects adjusted earnings margin to improve by 5 percentage points in 2024, but later corrected that a typo occurred and it actually expects margin improvement of 0.5 percentage points.
Uber (UBER.US) trades higher after announcing the launch of a share buyback program. The company authorized buybacks worth $7 billion, or almost 5% of Uber's pre-announcement market value. This comes after the company managed to achieve positive operating profit and free cash flow in 2023.
Uber Technologies (UBER.US) launched today's trading higher after authorization of $7 billion share buyback program. Stock gains over 6% at trades at fresh record highs. Source: xStation5
Robinhood Markets (HOOD.US) rallies at a double-digit pace today after reporting Q4 earnings. Company reported a 24% YoY jump in net revenue to $471 million (exp. $457 million). Number of monthly active users reached 10.9 million (exp. 10.8 million), while assets under custody reached $102.6 billion (exp. $96.5 billion). Adjusted EBITDA came in at $133 million (exp. $99.6 million) and net income at $30 million. Company reported $0.03 profit per share, in spite of an expected $0.93 loss per share.
Upstart Holdings (UPST.US) plunges after reporting Q4 earnings and providing a disappointing Q1 guidance. Company reported a 4.5% YoY revenue drop to $140.3 million (exp. 134.8 million). Adjusted EBITDA came in at $0.62 million (exp. $0.73 million) while adjusted loss per share reached $0.11 (exp.$0.13). Company expects Q1 revenue at around $125 million (exp. $147 million), adjusted Q1 EBITDA loss of around $25 million and adjusted Q1 net loss of about $33 million.
Share price of Robinhood Markets (HOOD.US) surges after release of Q4 earnings. Stock launched today's cash session around 15% higher and is currently trading at the highest level since April 2022. Source: xStation5
