US OPENING: US indices are under downward pressure at market open 📉

• Major Wall Street indexes open lower
• US bond yields rise again
• Dollar (USDIDX) strengthens 0.40%

In the middle of the week, we continue to observe sustained selling pressure in stock markets. All major US stock indexes, including the S&P 500, Nasdaq-100 and Russell 2000, opened lower. A stronger dollar and rising US bond yields are contributing to this selling pressure.

S&P 500 Index

The bullish momentum of the US500 index has clearly slowed. Last week, a local and historical maximum formed in the area of ​​5930 points. Bulls are currently facing obvious difficulties in maintaining demand amid a particularly strong dollar. The USDIDX dollar index is up more than 4.00% from its early October low and is gradually putting more pressure on the stock market. However, the key catalyst for a move up or down could be the earnings reports from the largest companies in the index, which we will see this week and next. Next week we will also present reports from the labor market. The below-expected data will undoubtedly increase expectations of interest rate cuts. Conversely, higher data could indicate smaller rate cuts this year, which would consequently increase downward pressure on indices.

Source: xStation 5

Corporate news

Texas Tools (TXN.US) rose 3.60% after the company beat third-quarter expectations with 9% sequential revenue growth. However, fourth-quarter guidance of $1.07-$1.29 earnings per share and $3.7-$4 billion in revenue fell short of analysts’ estimates of $1.35 per share and $4.08 billion in revenue, pointing to potential challenges ahead , despite recent successes.

Spirit Airlines (SAVE) Shares rose 38% following reports of merger talks with Frontier Group (ULCC), possibly as part of a debt restructuring process through bankruptcy. The news, which could lead to operating synergies and financial stability, followed a 53% rise on Monday after Spirit secured a debt refinancing extension that helped ease financial pressure.

Trump Media and Technology Group (DJT.US) rose another 6.30.5% due to investor speculation regarding the possible success of Donald Trump in the upcoming elections. That followed a 10% rise on Tuesday, the stock’s highest close since July, driven by growing optimism about Trump’s election prospects.

Enphase Energy (ENPH.US) fell 13.30% after reporting a 31% year-over-year decline in revenue in the third quarter, with net income falling to $45.76 million from $113.95 million a year earlier. The company issued disappointing guidance for the fourth quarter, forecasting lower-than-expected revenue of $360 million to $400 million and weaker-than-expected gross margin, indicating headwinds remain.

Starbucks (SBUX.US) trims the stock’s decline from an initial 4% to its current 0.80% after reporting a 7% drop in global same-store sales and a 3% drop in net income in the fourth quarter, below analysts’ estimates. Despite the 7% dividend increase, weak performance in North America and China, as well as the suspension of its fiscal 2025 guidance, have raised investor concerns.

Actions McDonald’s (MCD.US) fell 5.70% after the CDC warned of an E. coli outbreak linked to Quarter Pounder, prompting the company to remove chopped onions from its supply chain and temporarily suspend sales of Quarter Pounder in several US states. Rapid response reflects the potential for food safety risks affecting the chain.

Actions Qualcomm (QCOM.US) fell more than 2.50% after Arm Holdings terminated a key licensing agreement, escalating the legal battle between the two companies. The dispute surrounding Qualcomm’s acquisition of chipmaker Nuvia threatens Qualcomm’s access to Arm’s intellectual property and poses significant risks to its chip design business.