Stocks on the Move
Shares of Rivian popped 6% on better-than-expected results and production guidance, while Array Technologies tumbled 18% on weak full-year guidance for earnings and revenue. Robinhood sank nearly 11% after posting significant declines in trading volumes.
Roblox shares surged more than 18% before the bell after posting stronger-than-expected third-quarter results. Revenue, referred to as bookings, came in at $839 million and ahead of the $830 million estimate, per LSEG. The gaming platform posted a narrower-than-expected loss of 45 cents per share, versus the 51-cent loss expected by Wall Street. Year over year, Roblox reported a 20% increase in bookings. Daily active users also rose 20% from a year ago to 70.2 million, according to CNBC.
Fed Chair Powell Speaks
U.S. Treasury yields were little changed Wednesday as investors considered the path ahead for monetary policy as they looked to comments from Federal Reserve officials including Fed Chair Powell.
Powell indicated last week that the option for rates going higher still remains on the table and that rate cuts have not yet been discussed by the central bank.
He and other Fed officials are scheduled to make remarks this week, with Powell expected to speak on Wednesday and Thursday. Traders are expecting Powell’s remarks to set the tone for the rest of the week.
Technical Analysis
The E-mini S&P 500 Index is edging higher on Wednesday as it tries to pullaway from the 50-day moving average, putting it in a position to challenge the next resistance level at 4424.50.
Not only is this price level resistance, but it’s also a potential trigger point for an acceleration to the upside with the next target level coming in at 4494.00.
The key to sustaining the rally is holding the 50-day moving average at 4373.07.
A failure to hold 4373.07 will put the index in a weak position over the short-term. The longer-term direction, however, is likely to remain intact with key support the 200-day moving average at 4277.04.
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