• US reported biggest daily rise in infections
• US Jobless Claims Rise 1.5M
• KB Home (KBH.US) stock plunges on weak earnings
US indices opened lower on fears that a second wave of COVID-19 infections will hurt global recovery. Yesterday, US reported almost 45.500 new cases, which is the highest daily increase since the outbreak started, according to NBC. California and Florida also showed a record daily spike and Houston may exceed ICU capacity this week. The governors of New York, New Jersey and Connecticut announced a 14-day quarantine for travelers entering from the worst infected areas. Also rising trade tensions between the US, Canada and Europe due to new tariffs and travel restrictions weighed on market sentiment. On the data front, approximately 1.48 million Americans applied for initial unemployment benefits in the week ending June 20. The number came in above analysts’ expectations of1.30 million and was down only slightly from 1.54 million in the prior week. Today's report might indicate that the labor market faces a prolonged and difficult recovery from the COVID-19 pandemic. Meantime US economy was confirmed contracting by an annualized 5.0 percent in the first three months of the year, the most since the last quarter of 2008. The dollar index strengthened for the second straight session to around 97.4 on Thursday as investors' risk appetite dampened.
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S&P500 (US500) is testing key support at 3024.0 pts which is additionally strengthened by 200 MA (red line). In case buyers manage to halt decline there, an upward impulse toward 3067.9 pts could be launched. On the other hand , breaking below it may trigger a bigger downward move toward 2961.6 pts. Source: xStation5
KB Home (KBH.US) shares plunged 13% in extended trading after the home construction company posted its second-quarter earnings. KB Home reported earnings of 55 cents per share with revenue of $914 million, while analysts polled by Refinitiv expected earnings of 49 cents per share and revenue of $1.06 billion. KB Home announced that the company’s order cancellation rate increased due to the pandemic, therefore gross orders and net orders in the second quarter decreased by 36% and 57%, respectively.
KB Home (KBH.US) – price broke below support at $29.67 per share. Should downbeat moods prevail support at $24.75 per share may come into play. Source: xStation5
Darden Restaurants (DRI.US) reported quarterly loss of $1.24 per share, while analysts expected a loss of $1.65 per share. Revenue came in line with expectations. Company reported sales decline of 47.7%. Meantime sales for the current quarter are down by 33.2%, with 91% of its dining rooms now open with at least limited capacity.
McCormick (MKC.US) reported better than expected quarterly earnings. Company earned $1.47 per sharebeat, which came in 31 cents a share above expectations. Revenue also beat forecasts as more clients were cooking at home due to the ongoing pandemic.
American Airlines (AAL.US) stock dropped 1% after market close. Yesterday company’s stock sinked after state officials in New York, New Jersey and Connecticut said they were requiring a two-week quarantine for travelers coming from coronavirus hot spots that include Alabama, Arkansas, Arizona, Florida, North Carolina, South Carolina, Washington, Utah and Texas.
Hertz (HTZ.US) stock jumped 7% after the closing bell. Jefferies said yesterday that it believes AutoNation and Carmax are considering buying cars from the bankrupt company.
Envista Holdings (NVST.US) stock rose 6% in extended trading. Yesterday John Rogers, chairman and co-CEO of Ariel Investments, described Envista as one of his “value picks”. Rogers praised Envista’s products and reasoned, “People have to go to the dentist again.”
Accenture (ACN.US) posted its quartelry earnings. The consulting firm earned $1.90 per share which came 5 cents a share above estimates. Revenue was approximately 1% compare to last year, however company's digital and cloud services businesses are expanding quickly.
FactSet (FDS.US) posted quarterly earnings of $2.86 per share, well above analysts’ expectations of $2.43 a share. Revenue was slightly below forecasts. The provider of financial markets information said the quarter was a strong one despite “challenging” circumstances.
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