US OPEN: Wall Street shares lack direction

US indices are trading mixed today as weaker than expected U.S. jobless claims data  weighed on investors moods. Today's report showed that 1.877 million people in the last week applied for unemployment benefits, which came in above forecasts of 1.8 million. However continuing jobless claims rose sharply, nearly reaching 21.5 million, after falling for the first time since the pandemic the week before. Protests in the US  calmed down slightly after new charges were brought against former police officers who killed George Floyd. Meanwhile LA Mayor announced he will redirect $250 million from departments including the police, to health and education in the black community and other communities of colors. Dow Jones and S&P 500 are trading  slightly below the flatline, however Nasdaq-100 is testing it's all time high.

Nasdaq- 100 (US100) is currently trading near it’s all time high. However, should downbeat moods prevail, a downward impulse towards 9377.72 pts could be launched. Source: xStation5

Cloudera (CLDR.US) stock plunged 11% in extended trading after the  posted its first-quarter earnings. The enterprise data cloud firm posted $210.5 million in revenue for the quarter ending April 30, representing growth of 12% and higher than an analyst consensus of $204.9 million. Its non-GAAP earnings were 5 cents per share, higher than a consensus of 0 cents.  The company also provided a weak revenue guidance for the second quarter, but strong earnings guidance for the second quarter and the rest of the fiscal year. Cloudera’s stock hit a 52-week high earlier on Wednesday.

Cloudera (CLDR.US) stock price failed to stay above strong resistance at $12.22 per share. Should downbeat moods prevail, support at $9.39 may come into play. This level is  also strengthened by 200 MA (redline). Source: xStation5

Fossil (FOSL.US) stocks dropped 4% in extended trading after the company announced disappointing first-quarter financial results. The fashion company recorded a loss of $1.69 per share on revenues of $390.7 million while analysts polled by Factset expected a $1.51 loss per share  and $381.3 million in revenue. Fossil announced it has cut costs and “enhanced its financial position” by drawing down $100 million of its $275 million credit facility and canceling the majority of its planned capital expenditures for 2020, among other measures. Company did not provide any future financial guidance and is expecting the biggest sales impact to be in the second quarter. The company begun reopening of its retail stores and expects  that all shops will open for business by the end of June 2020.

 

J.M. Smucker (SJM.US) –  reported quarterly earnings of $2.57 per share, well above market expectations of $2.29 a share. Revenue also came in above estimates thanks to higher consumer demand resulting from the coronavirus pandemic. The food producer is expecting a 1% to 2% decline in overall sales for the next fiscal year, caused by the weakness in its “away from home” business.

Tiffany (TIF.US) - French luxury goods producer LVMH is looking for ways to renegotiate the acquisition of its US competitor, according to a Reuters report. The deal was announced in November, but it's not over yet, and since then pandemic and social unrest affected Tiffany's results.

Ciena (CIEN.US) – reported quarterly adjusted earnings of  76 cents per share , well above analysts’ expectations of 49 cents a share. Revenue was also beat forecasts. Ciena announced it has sufficient resources to weather the pandemic.

FedEx (FDX.US)  followed United Parcel Service (UPS.US) footsteps and is adding surcharges to some U.S. shipments in order to manage rising costs and a surge in package shipments amid the coronavirus pandemic.