• US is considering sanctions against Chinese officials and companies
• President Trump threatens to shutter social media
• Tesla is cutting car prices
US indices opened higher despite rising tensions between the Beijing and Washington over the Hong Kong national security law. Bloomberg reported that the Trump administration is considering a range of sanctions, including controls on transactions asset freezes of Chinese officials and businesses. President Trump warned Hong Kong could lose its status as a financial centre if the security law was imposed. Also President Trump threatened to regulate or shut down social media companies, after Twitter Inc (TWTR.US) for the first time added a warning to some of his tweets prompting readers to fact check the president's claims. However, despite these negative news, Dow Jones and S&P 500 are trading higher because, as Reuters put it “investors focused on progress in reopening economies” while massive fiscal stimulus including 117 trillion yen out of Japan and €750 billion out of Europe, helped spark bullish sentiment.
S&P 500 (US500) is strugling to stay above the psychological level of 3000 pts. In addition, the price sits below the 200-period moving average, which previously acted as a resistance. Should bearish moods prevail, an downward impulse towards 2968.3 pts could be launched. On the other hand, once buyers regain control, the resistance at 3159.7 pts may be at risk. Source: xStation5Papa John’s (PZZA.US) announced that comparable-store sales rose 33.5% in North America in May. Company is planning to provide further monthly update in June.
Papa John’s (PZZA.US) jumped over 4% in pre-market trading, however launched today's session lower. If bearish sentiment prevails then price may move towards support at $70.24 per share. If buyers manage to take control on the market, then upward move into $74.67 per share is possible. Source: xStation5Domino’s Pizza (DPZ.US)— shares rose 1% in extended trading after the company released preliminary second-quarter results. The pizza chain’s sales results accelerated between March 23 and May 17 and were up 20.9% compared to the same period last year. However, company announced that its international sales results “continue to be choppy”.
Moderna (MRNA.US) stock dropped another 8.2% after plummeting 16% on Tuesday, as the company insiders had sold stock immediately after the company pushed out more than $ 1.3 billion in new shares to investors last week.
Walt Disney (DIS.US) announced that Walt Disney World Resort executives will submit a reopening proposal on Wednesday to the Orange County Economic Recovery Task Force in Florida. Disney needs approval from the county and then from the governor before Walt Disney World can reopen.
Boeing (BA.US) – union officials informed that the company is planning to announce 2,500 voluntary layoffs this week. The jet maker is planning to reduce 10% of its workforce.
Tesla (TSLA.US) lowered its vehicle prices in North America by as much as 6%, due to shrinking auto demand caused by the pandemic.
Amazon.com (AMZN.US) is in advanced talks to buy Zoox, according to The Wall Street Journal. Zoox is a developer of technology for self-driving taxis that can be summoned by phone.
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