• US stock markets opened higher
• Moderna (MRNA.US) shares fell as COVID-19 vaccine optimism fades
• Strong results amid a lockdown from Lowe’s (LOW.US) and Target (TGT.US) helped market sentiment
• Moderna (MRNA.US) shares fell as COVID-19 vaccine optimism fades
• Strong results amid a lockdown from Lowe’s (LOW.US) and Target (TGT.US) helped market sentiment
US indices extended gains on Wednesday as investors welcomed positive signs of economic activity during the pandemic after Lowe's (LOW.US) reported better than expected quarterly results and Target (TGT.US) online sales jumped 141% in the first quarter. President Donald Trump and Treasury Secretary both talked about the potential prospects of a strong economic recovery in the third quarter, amid increasing signs of economic reopening across the country ahead of the Memorial Day weekend. Meantime, doubts over a potential coronavirus vaccine mounted after website STAT reported that several experts concluded that based on the information made available there’s really no way to know how impressive the vaccine may be since not much data was made available by the company. Following Fed Chair testimony in front of Congress Tuesday, investors also await the FOMC minutes release later in the day for further clues on any new stimulus measures.
S&P 500 (US500) is still trading near major resistance at 2968.3 pts, which is additionally strengthened by 200 MA(redline) If buyers manage to break above it, an upward impulse towards next resistance at 3159.7 could be launched. On the other hand, once sellers regain control, the support at 2828.3 pts may be at risk. Source: xStation5
Moderna (MRNA.US) - shares dropped 6% in extended trading after STAT reported that the company did not provide enough data regarding the effectiveness of its potential Covid-19 vaccine. Price is currently testing major support at $68.31 per share. Source: xStation5Lowe’s (LOW.US) – reported better than expected quarterly results. Company earned $1.77 per share, well above the $1.32 a share consensus estimate. Revenue also came in above forecasts. The home improvement retailer recorded an 11.2% increase in comparable-store sales while analysts had been expecting only a 3.3% increase. Company withdrew its full-year forecast due to the uncertainties caused by the pandemic.
Lowe’s (LOW.US) launched today’s trading session with a bullish price gap. Should upbeat moods prevail, resistance at $127.63 per share may come into play. Local support can be found at $115.28 per share. Source: xStation5Target (TGT.US) recorded first quarter earnings of 59 cents per share which came in above analysts’ expectations of 40 cents a share. Revenue beat forecasts as well. Comparable store sales increased10.8%, well above analysts’ expectations of a 7.5% increase. Company also reported a surge in digital sales.
Luckin Coffee Inc (LK.US) stocks sinked almost 40% to a record low in premarket trade on Wednesday, as the company resumed trading after more than a month's halt and a day after the Chinese coffee chain announced it received a delisting notice from Nasdaq.
Urban Outfitters (URBN.US)— reported a loss of $1.41 per share on revenue of $588 million, missing analysts’ expectations of a loss of 29 cents per share with revenue of $627 million, according to Refinitiv. The clothing retailer’s sales fell 28% from the same period last year, which was caused by store closures due to the pandemic, according to a company statement. Company's preliminary gross profit dollars shrinked by 95.6% to $11.8 million. The clothing retailer’s stock tumbled 5% in extended trading.
Johnson & Johnson (JNJ.US) shares fell 1% in extended trading after the company announced that it will stop selling its talc-based baby powder due to decreasing demand for the product which was caused “in large part to changes in consumer habits and fueled by misinformation around the safety of the product and a constant barrage of litigation advertising,” according to a company statement. The company has been hit with thousands of lawsuits alleging its baby powder causes cancer.
According to The Wall Street Journal Harley-Davidson (HOG.US) – is planning to reopen its factories this week at reduced production rates and sending dealers fewer motorcycles.
According to CNBC, Apple (AAPL.US) will pay Sony (SNE.US) $70 million for the streaming rights to the Tom Hanks World War II film “Greyhound". Sony planned to release the movie on Father's Day weekend, but these plans have changed due to the pandemic. Now the movie will instead debut on Apple TV.
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