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. 

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