- US100 gains ahead of FOMC Minutes
- Anti-obesity companies in focus
- Updates on tariffs put auto companies under pressure
- Zoom Video Communications loses despite release of strong financial results
Markets in the US open Tuesday’s cash session in a mixed mood. Five minutes after the Wall Street open, the Nasdaq is gaining 0.3%, while the S&P500 is adding 0.25%. On the other hand, however, the Russell 2000 index loses 0.45% and the Dow Jones is down 0.3%. Investor attention today is focused on corporate news and the FOMC Minutes.
Current volatility observed on Wall Street. Source: xStation
US100
The Nasdaq-100 Index, represented by the US100 contract is trading slightly higher today compared to the close of trading yesterday. The index continues its dynamic upward trend all the time. From a technical perspective, it seems that support set by the 50-day EMA (blue curve on the chart) and the psychological level of 20,000 points may be key to sustaining the increases. The local resistance level, which may determine whether the instrument will try to break out to new record levels, is the 21,000-point area.
Source: xStation 5
Corporate news
Eli Lilly (LLY.US) and Novo Nordisk (NVO.US) are gaining more than 3.5% in today’s early cash session after the Biden administration proposed a rule that would require the U.S. government to cover the cost of weight-loss drugs through the Medicare and Medicaid systems.
However, not all companies in this sector are doing as well. Amgen Inc. (AMGN.US) is down 7% after the company’s experimental formulation for obesity helped patients lose up to 20% of their body weight in a one-year study, disappointing investors who had hoped the study would yield greater weight loss for test group participants.
Values of automotive companies are under downward pressure today. General Motors (GM.US) shares are losing 4%, and Ford (F.US) are down about 2%, as President-elect Donald Trump promised to impose additional tariffs on China, as well as on US neighbors Canada and Mexico. It’s worth remembering that these automakers import vehicles into the US from multiple factories located in China, Canada and Mexico.
Zoom Video Communications (ZM.US) shares fell 6.5% after the company released its third-quarter results and outlook. Although the results are seen as positive, some analysts said the report fell short of exorbitant expectations, as the stock rose more than 60% from its August low and recently closed at its highest level since August 2022.
2025 FORECAST
- Anticipates revenue of $4.66 billion to $4.66 billion, the company previously estimated $4.63 billion to $4.64 billion, estimates $4.64 billion
- Predicts operating profit of $1.81 billion to $1.82 billion, earlier company estimated $1.79 billion to $1.8 billion, estimates $1.8 billion
- Forecasts adjusted earnings per share of $5.41 to $5.43, up from $5.29 to $5.32, estimated $5.34
- Still sees free cash flow of $1.58 billion to $1.62 billion, estimated $1.6 billion
FOURTH QUARTER FORECAST
- Sees revenue of $1.18 billion to $1.18 billion, estimated $1.17 billion
- Sees operating profit of $443.0 million to $448.0 million, estimated $443.6 million
- Sees adjusted earnings per share of $1.29 to $1.30, estimated $1.28
Q3 RESULTS
- Revenue $1.18 billion, +3.6% y/y, estimated $1.16 billion
- Adjusted earnings per share $1.38 vs. $1.29 y/y, estimated $1.31
- Free cash flow $457.7 million, +1% y/y, estimated $356.1 million
- Number of corporate customers 192,400, -12% y/y, estimated 188,954
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