• GAP INC (GPS.US) downgraded by Moody’s
The United States reported 85,762 infected cases and become the most affected country in the world, surpassing China, according to the WHO.
Wall Street fell over 3% on Friday, a day after the US indices posted their best three-day run since the early 1930s, due to fears that US might become the next global epicenter of the coronavirus pandemic. It looks like unprecedented policy easing by the FED and hopes of a $2.2 trillion government stimulus aid bill were not enough to calm investor’s nerves.
Major US indices are still trading over 20% lower from their February record highs and most likely upside momentum will not last without evidence that the virus was being contained.
S&P500 (US500) after strong gains from yesterday, profit-taking hits Wall Street today. The index is currently testing a strong support level at 2505. Breaking below this level may lead to further declines. Source xStation 5Gap (GPS.US) - owner of brands like Gap, Old Navy, and Banana Republic, withdrew its full-year forecast, which was published at the beginning of March, because all stores were closed due to the spread of the pandemic. The company also suspended its dividend and announced that it would use its entire $ 500 million credit facility. Moody's downgraded Gap rating to junk status.
Gap (GPS.US) – share price bounced off the local resistance at $9.39 per share and is heading towards recent lows around $6.00 per share. Source:xStation5Lululemon (LULU.US) - presented better results than expected. Quarterly profit of USD 2.28, which is 4 cents above consensus. Sales dropped significantly in the second week of March because the spread of corornavirus forced the company to close stores in the US and Europe.
Lululemon (LULU.US) – share price failed to break above the support level at $196.18 and retraced to the support located at the $186.52. Breaking below these level may cause sharper declines. Source:xStation5This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
