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Wall Street indices launched cash session mixed
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Moderna triples vaccine sales in Q1 2022
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Tesla plans to set up second factory in Shanghai, China
Indices from Wall Street launched today's trading mostly flat. Dow Jones was top performer, trading 0.15% higher at the session open. A disappointing ADP employment data release had little impact on indices and markets overall. Traders should not expect non-manufacturing ISM print at 3:00 pm BST to have a major, long-lasting impact on the markets either as today is all about the FOMC decision in the evening (7:00 pm BST).
Source: xStation5
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Open account Try demo Download mobile app Download mobile appS&P 500 (US500) managed to defend a key support zone ranging between 4,140 pts mark and 23.6% retracement of the post-pandemic recovery move (4,185 pts). Taking a look at the US500 chart, we can see that the daily candlestick from Monday had a long, lower wick. It hints that there is a strong bulls' camp below the aforementioned support zone, what paints a somewhat bright outlook for the index. A recovery move was launched and it still continues. If bulls remain in control, the first near-term resistance to watch is marked with 4,260 pts swing level. However, a key resistance is located in the 4,575 pts area. This zone also marks a neckline of double bottom pattern with a textbook range of 440 points.
Company News
Moderna (MRNA.US) reported Q1 2022 results today ahead of the session open. Company reported revenue at $6.07 billion (exp. $4.62 billion) and adjusted EPS at $8.58 (exp. $5.21). Strong results were driven by vaccine sales that reached $5.9 billion during the quarter - more than 3 times higher than $1.7 billion reported in Q1 2021. Results show that Covid-19 pandemic was a gamechanger for the company and approval of booster shots helped prop up vaccine sales even as pandemic is receding in most countries of the developed world. However, Moderna's CEO said that there is a possibility that the US government will not place an order for booster shots this fall.
Starbucks (SBUX.US) reported Q1 2022 results yesterday after the close of the session. Headline results were in-line with expectations - revenue at $7.64 billion (exp. $7.6 billion) and EPS at $0.59 (exp. $0.60). Company said that strong demand in the United States helped it offset weaker performance of business in China. However, a combination of lockdowns in China and higher inflation made the company suspend its fiscal-2022 guidance. Company previously expected fiscal-2022 adjusted EPS to increase 8-10%. Company also highlighted unionizing of its workers in the United States as a potential drag on the business going forward.
Tesla (TSLA.US) announced plans to set up a second factory in Shanghai, China. New plant will have an annual production capacity of 450 thousand electric vehicles. Tesla wants to turn Shanghai into the world's largest vehicle export hub by setting up a new factory.
Shares of Moderna (MRNA.US) are trading higher following the release of superb Q1 earnings. Part of the premarket gain was trimmed after the company's CEO warned that an order for booster shots from the US government may not come this fall. However, today's jump in share price changes little from a technical point of view, stock remains stuck in a wide $122-190 trading range. Source: xStation5
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