Solid News

The US stock market continues to correct, and its dynamics depends on both corporate reporting and the news background, which increasingly affects the direction of quotes. At the moment, the S&P 500 index is correcting upwards, trading in the area of 4119.0.

American semiconductor manufacturer Micron Technology Inc. announced additional investments to expand US chip manufacturing that could total up to 40.0 billion dollars. Streaming service Netflix Inc. continues to gain ground in the mobile gaming industry, announcing at least a doubling of the number of games for subscribers of the service by the end of the year.

The largest US recording studio Warner Music Group Corp. released its financial results the day before, showing a rise in earnings per share to 0.2708 dollars from 0.1839 dollars a quarter earlier. The company's revenue was 1.43 billion dollars, up from 1.38 billion dollars in the previous quarter. Today, another leader in the entertainment segment, The Walt Disney Co., will release its report. Analysts project revenue of 20.99 billion dollars, up from 20.27 billion dollars in the previous quarter, and EPS is expected to be in the range of 0.9762 dollars, below the 1.08 dollars posted in the first quarter.

The growth leaders in the index are Nielsen Holdings Plc. (+21.18%), Principal Financial Group (+7.12%), News Corp. (+5.46%), Valero Energy Corp. (+4.02%).

Among the leaders of the decline are Lam Research Corp. (-7.88%), Applied Materials Inc. (-7.58%), Teradyne Inc. (-6.93%).

The index quotes are traded in a global downward channel, having come close to the resistance line. Technical indicators maintain a steady buy signal: the fast EMAs of the Alligator indicator are above the signal line, and the histogram of the AO oscillator is trading in the buy zone, forming multidirectional bars.

Support levels: 4076.0, 3808.0. | Resistance levels: 4188.0, 4471.0.