Indices on Wall Street are trading slightly higher after the Wednesday open, supported by the profits of the largest technology companies and other signals that inflationary pressure in the US is weakening. The S&P 500 is up 0.4%, the Nasdaq Composite is up 0.2% and the Dow Jones is up 0.1%. Sentiment has tightened following weak, unanticipated PPI data and comments from New York Fed President John Williams, who pointed to growing prospects for further declines in inflation. The scope of the growth however remains limited by the further rise in oil prices after the new US tariff cuts in the spring. Compared to the futures on the Nasdaq 100, which inhibits the loss of the stock of IP manufacturers, the futures on the S&P 500 perform noticeably better. Tesla grows revenue by 2%, while Amazon, Apple, Microsoft and Alphabet gain more than 1% and support the market. The American index of producer prices fell by 0.3% month-on-month in April, while stagnation prevailed in the week. This strengthens the signal from the two weak points not measured by the CPI at first. The probability of a Fed rate hike in the euro fell to 17% from 42% on day two, as markets saw the possibility of a move in z. Investors reacted positively to comments by John Williams that inflation may have peaked and should gradually decline in the coming quarters. WTI crude is up 1% above USD 80 per barrel, while Brent is up around 0.6% and after other US crudes for the year it is above USD 85. BlackRock shares are up more than 6% after the asset manager posted better-than-expected quarterly results. Despite the improving inflation, the market will focus on external oil prices and potential inflationary pressure associated with the investment boom in AI.
Graf US500 (interval D1)
Today, the contract is rising to 7,620 points and is pushing towards new all-time highs despite the level of some technological actions. The 50-day EMA is near 7,500 points, while the 200-day EMA is near 7,000 points. A break above 7,700 points would be a setback for the bulls and could open the way to the level of 8,000 points.
Source: xStation5
American chart session opened
At the close of the session, PayPal led gains in the Nasdaq 100 index following a possible takeover bid from Stripe and private equity firm Advent. Among the strongest titles are Adobe, Workday and Strategy, while the decline is dominated by semiconductor companies including Sandisk, Marvell, Western Digital and Micron. This indicates an excellent gain after a strong AI rally in the sector. Despite the weakness of selected memory and IP stocks, sentiment in the technology sector remains positive.
Source: XTB Research The sector map of the Dow Jones Industrial Average shows the clear strength of rising stocks, with gains led by the largest technology and communications companies, including Apple, Microsoft, Alphabet and Amazon. JPMorgan and Merck are leading the way, while UnitedHealth, Visa, Coca-Cola and Cisco are among the titles that slow down the index. The overall picture of the market is small, with five chapters concentrated mainly in the largest technological companies and sectors associated with digitization.
Source: XTB Research
Corporate at first
PayPal (PYPL.US): Shares of the digital payments platform rose 16% after Reuters reported that Stripe and private equity firm Advent had filed a $53 billion takeover bid. Proposed price in USD 60.50 per share. According to the source, the offer was spurred by the arrest of this month. Johnson & Johnson (JNJ.US): Shares fell more than 1% in the premarket despite better-than-expected second-quarter results. J&J reported adjusted earnings per share of $2.90, versus a forecast of $2.85. Revenue came in at $25.31 billion, beating the consensus estimate of $25.05 billion. Alibaba (BABA.US): Americ ADR Alibaba rose 5% after it announced that its AI model Qwen will be integrated into Apple Intelligence in n. The market saw this development as potentially important support for Alibaba’s position in the domestic artificial intelligence ecosystem in n. Semiconductor sector: IP manufacturers rose at the start of the session, while the VanEck Semiconductor ETF (SMH) gained 1.2%. The growth was led by ASML, which posted a 3% increase in demand for the second time this year. Intel and Lam Research also gained more than 3%, which confirms the improvement of sentiment in the sector.
PayPal Actions (Interval D1)
PayPal stock is once again trading above the 200-day EMA, a prominent red line, but a reversal of the long-term trend would require a break above the top of the entire downtrend channel. A move above $60 could spark such an end, while a drop below $50 per share could signal that the bears are regaining control, and could signal that a takeover will not happen. The proposed transaction values the company at a premium of 10% above its current share price.
Zdroj: xStation5
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