• Wall Street swung between gains and losses during today’s open
• FED announced temporary repo facility
• McCormick (MKC.US) trades higher based on good quarterly results
US indices are trading higher on Tuesday in another volatile session. The number of coronavirus cases in the US reached almost 165,000 therefore concerns regarding global recession are growing among investors. Meanwhile US government is preparing a fourth stimulus package to help the economy to recover and to fight the spread of the pandemic.
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Create account Try a demo Download mobile app Download mobile appFed announced today a temporary repurchase agreement facility for foreign and international monetary authorities (FIMA Repo Facility), aiming to support the smooth functioning of financial markets. The major central banks and other international monetary authorities will be able to temporarily exchange their US Treasury securities for US dollars, providing an alternative source of US dollars other than sales of securities in the open market. These actions were caused by the high demand for the US dollar as investors are looking for safe heaven assets due to potential liquidity problems. Today the dollar index went up and is trading near 99.6.
Considering the 1st quarter of the year, the Dow Jones plunged more than 21% and is on pace to book its worst quarter since 1987; the S&P 500 dropped almost 18%, the worst since 2008; and the Nasdaq went down near 13%.
S&P500 (US500) - yesterday upward movement was stopped at local resistance 2648 pts. As long as the price sits below it, the continuation of a downward trend looks more probable. Breaking below support at 2505 pts may put further selling pressure. Source:xStation5
Carnival (CCL.US) – share prices is falling after the company announced that is suspending dividend payments and stock repurchases, as voyage suspensions continue amid the spread of the coronavirus. The cruise line operator said that is expects net loss in the current fiscal year however at the moment is not able to estimate the impact of coronavirus on its business.
Carnival (CCL.US) – share price failed to broke above major resistance level at $19.003 per share and continue it’s downward movement towards local support level at $8.55 per share. Source:xStation5.
McCormick (MKC.US) – announced better than expected quarterly earnings, namely 5 cents a share above estimates. The spice maker earned $1.08 per share however its revenue was below forecasts due to the coronavirus outbreak. McCorick withdrew its prior financial forecast due to uncertainties surrounding the ongoing pandemic.
McCormick (MKC.US) share price surged recently and is testing strong resistance level at $142.63 per share. If the positive sentiment remains, then the stock may be heading towards key support at $159.25 per share. Source:xStation5
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