US OPEN: Earnings season kicks off

• US stock markets  opened higher
• Johnson & Johnson (JNJ.US)  raised its dividend by over 6%
• JP Morgan (JPM.US) earnings drop 69%

US indices opened higher today as earning season begins. Investor sentiment improved after some countries reported a sustained decline in the rate of new daily cases in recent weeks, spurring hopes that some of the restrictions might be lifted. The dollar index dropped slightly to 99.01, the lowest  level since March 31st after China's trade balance data came better-than-expected, suggesting the drag from the coronavirus may be starting to fade.

S&P500 (US500) is trying to erase yesterday losses. Index is moving towards next resistance level at 2904.6 pts. The local support can be found at 2648.0 pts. Earnings season will offer some insight into the damage coronavirus outbreak has done and will be a test to current optimism. Source: xStation5

 

JP Morgan (JPM.US) reported lower than expected quarterly per share earnings of 78 cents, as the bank added $ 6.8 billion to loan loss provisions. Analysts expected earnings at $1.84 per share. Profit of $ 2.87 billion fell 69% from a year earlier. CEO Jamie Dimon said in the release. "In the first quarter, the underlying results of the company were extremely good, however given the likelihood of a fairly severe recession, it was necessary to build credit reserves of $ 6.8B, resulting in total credit costs of $ 8.3B for the quarter."

JP Morgan (JPM.US) share price rose  after publication of the first quarter results. The price is approaching major resistance level at $105.25. Should upbeat moods prevail, resistance at $119.59 may come into play. On the other hand break below $96.78 will negate the bullish scenario. Source: xStation5

 

Johnson & Johnson (JNJ.US) – reported better than expected quarterly profit of $2.30 per share, beating the consensus estimate of $2.00 a share. Revenue also came above expectations. The company reduced its full-year guidance to account for the impact of the coronavirus pandemic. J&J raised its dividend from 95 cents a share to $1.01, a 6.3% increase. “The dividend this morning is a real good sign of the strength of the company. We’re in great financial position,” said Chief Financial Officer Joseph Wolk.

Johnson & Johnson (JNJ.US) – share price bounced of the$137.88 resistance level and is heading towards $154.54 on the back of quarterly earnings that beat expectations. Source: xStation5

Wells Fargo (WFC.US) reported a profit of 1 cent per share while analysts expected earnings of 33 cents per share. Revenue of $17.717 billion also missed an estimate of $19.284 billion. The company reported earnings of $1.20 per share in the year-earlier period. Net income fell to $653 million. The company set aside money for credit losses due to a coronavirus outbreak. 

The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.