• Investors await stimulus talk outcome
• Walt Disney Co (DIS.US) due to report quarterly results after market close
US indices launched today’s session lower due to rising geopolitical tensions and slow progress on virus relief bill. Yesterday Microsoft (MSFT.US) confirmed it was looking to buy TikTok's U.S. operations. Situation worsened after President Trump said that the U.S. government should get a "substantial portion" of any deal price. Today, state-backed newspaper China Daily said the country will not accept the "theft" of the technology company.
Market attention is also focused on negotiations between Republicans and Democrats regarding new stimulus package. Senate is going on an extended break on Friday, therefore any new measure has to be approved before the end of the week. Meanwhile Congressional Democrats and White House negotiators said progress had been made despite Senate Minority Leader Chuck Schumer telling reporters that there were "a lot of issues that are still outstanding". Republicans and Democrats agreed on another $1,200 stimulus check, but both sides can not come to an agreement regarding the extension of an unemployment insurance benefit.
S&P500 (US500) is testing the major resistance at 3284.0 pts. If sellers manage to break below a way for a bigger downward move will be open with a potential target for sellers around 3187.8 pts. On the other hand, once buyers regain control, the resistance 3338.6 pts may be at risk. Source: xStation5
Analysts expect that Disney's revenue will decrease significantly and company will report its first loss in nearly five years on an adjusted per share basis. Source: XTB research, BloombergDisney's revenue from the Parks, Experiences and Products segment is the key metric to look for. This part of Disney's business generated 37% of total revenue and 40% of operating profit in FY 2019. In the last few years this segment was a stable source of income, however it took a massive hit during the pandemic as these tourist attractions are crowded consumer spaces, and they rely on travel and non-essential consumption.
Walt Disney Co. (DIS.US) – price is approaching the downward trendline. Should a break above the trendline occur, upward move may accelerate. Local resistance is located at $123.57 per share. However if sellers manage to halt declines here, the downward move into $108.45 per share is possible. Source: xStation5Virgin Galactic (SPCE.US)— stock plunged 8% in extended trading after company posted a loss of 30 cents per share and an adjusted EBITDA loss of $54 million for the quarter. Space travel company did not record any revenue for the quarter because the company has not started its commercial space tourism yet. Virgin Galactic is planning to raise about $460 million in a sale of around 20.5 million shares of common stock.
Virgin Galactic (SPCE.US) – stock price is approaching major support at $21.16 per share. . If sellers manage to break below it, a downward impulse towards $14.37 per could be launched. On the other hand, once buyers regain control, resistance at $27.86 may be at risk. Source: xStation5Edgewell Personal Care (EPC.US) earned 66 cents per share, below market expectations of 82 cents a share. Revenue came in below market forecasts. Company annouced that sales were significantly impacted by the pandemic, although the declines moderated during the third month of the quarter. Edgewell will aquire men’s grooming products company CREMO for $ 235 million.
Nikola (NKLA.US)— Shares fell 2% after the market close after rising. Hybrid truck manufacturer is scheduled to report earnings today after the bell. Deutsche Bank said the stock looks attractive, issuing a short term buy rating and maintaining its long-term hold rating.
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Open account Try demo Download mobile app Download mobile appTwitter (TWTR.US) - Federal Trade Commission accused Twitter of violating a 2011 consent order involving the user of consumer data in ad targeting. The company is facing a fine of up to $250 million.
AMC Networks (AMCX.US) reported quarterly profit of $2.39 per share, well above Wall Street estimates of $1.23 a share. Revenue also came in above analysts’ expectations. AMC announced that, it is in a solid financial position despite a challenging environment and is making significant progress with its new digital initiatives.
Regeneron Pharmaceuticals (REGN.US) – company's drug against COVID-19 which contains two monoclonal antibodies showed promising results during animals testing. The treatment is currently being studied in late-stage clinical trials involving human patients.
AIG (AIG.US) dropped 1% in extended trading after the company reported its quarterly earnings. AIG’s earned 66 cents per share excluding certain items, above market expectations of 50 cents per share.
Alphabet (GOOGL.US) borrowed $10 billion in the investment-grade corporate debt market, its largest-ever bond issue. Company's debt offering included $1 billion in 5-year debt at a coupon rate of just 0.45 percent.
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