US OPEN: FED introduces new 2.3 trillion loan programs

• FED announced further stimulus package
• US Jobless Claims Above Forecasts
• Disney (DIS.US) - number of subscribers almost doubled

 

US indices opened higher today after Federal Reserve rolled several new lending schemes worth $2.3 trillion, in addition to previous programs, aimed to support households local governments and small and mid-sized businesses. One scheme is a Main Street facility worth $600 billion and another is for buying municipal bonds up to $500 billion. It is expanding the primary and secondary corporate debt facility. Earlier, US jobless claims jumped by over 6 million, well above expectations of 5.25 million. However market reaction was muted. 

 

Meanwhile, investors focus turned to the highly anticipated OPEC+ meeting at which major oil producers are expected to agree on crude output cuts  between 10-15 million barrels per day. Such a sizable reduction would be far bigger than any production cut OPEC has ever agreed on before.
The meeting is expected to be more successful than their gathering in March, where they failed to agree to extend supply cuts and triggered a price war between Saudi Arabia and Russia.  Today US crude prices went up  more than 6% to near $27 a barrel.

S&P500 (US500) surged after FED unleashed further new stimulus package. In case the current sentiment prevails, index may move next retracement level at 2904 pts. The local support can be found at 2648.0 pts. Source:xStation5

Disney (DIS.US) share price soared up over 7% after the company announced that Disney+ subscriptions exceed 50 million. The new subscription number almost doubled as what the entertainment giant’s reported in first-quarter earnings release from February 4. At that time Disney announced that 26.5 million subscribers use its services.  The growth of subscribers base was caused by global stay-at-home orders, as well as the introduction of the service in India where 8 million people have signed up.

Disney (DIS.US) share price has been trading near the upper  limit of the range located between $90.01 and $108.66.  Only breaking any of these levels can lead to deeper price movements. In case of a break lower major support can be found at $79.67. However if the bulls take control, then next resistance is located  at $122.07. Source:xStation5

Starbucks (SBUX.US) – announced that the company profits for the  second-quarter most likely will drop by 47% due to the ongoing pandemic. The coffee chain is withdrawing its full-year forecast.  Starbucks will also suspend share buyback program, although the company will continue to pay dividend to shareholders.

Starbucks (SBUX.US) – share price managed to bounce off the support zone at $68.75 per and rally. Should upbeat moods prevail, resistance at $74.79 may come into play. Source:xStation5

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