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Stocks open higher after a long weekend
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Major US stock indices near all-time highs
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Citi upgraded Nio to “buy” after May delivery update
US stock markets opened higher to start the first trading day of June on a positive note. Equity markets advance along with rising commodities prices as investors remain optimistic about the US economy’s recovery. In fact, May was the fourth straight month of gains for the S&P 500 (US500) and the Dow (US30).
US Manufacturing PMI for May stood at 62.1 vs flash estimate of 61.5. Investors still look forward to key ISM Manufacturing for May that is due at 3:00 pm BST. Meanwhile, US Treasury yields tick up with 10-year yields rising to 1.63%. Russell 2000 (US2000) leads early gains, the index is up by 1.30%
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US500 has managed to break above key resistance area near 4,210 pts - a major threshold that bulls were not able to breach in recent days. As a result, the index climbed to highest levels since May 10. The path towards all-time highs is open and bulls might want to attack those levels soon. It is worth to notice that the sequence of higher highs and lows remains intact since mid-May, therefore the short-term trend remains upward. The mentioned 4,210 pts zone would be a major support in case of any declines. Source: xStation5
Company News
AMC Entertainment (AMC.US) surged over 10% in pre-market as meme stock mania is clearly not over. However, there are also some key fundamental headlines this time - the company raised $230.5 million of cash from the sale of equity to Mudrick Capital Management. AMC sold 8.5 million shares of common stock at a price of approximately $27.12 per share. The firm intents to use proceeds for the pursuit of value creating acquisitions of additional theatre leases, as well as investments to enhance the consumer appeal of AMC’s existing theatres. Also, the firm continues exploring deleveraging opportunities.
Tesla’s (TSLA.US) CEO Elon Musk said on Twitter that price hikes on Tesla vehicles were due to “major supply chain pressure” in the auto industry - “raw materials especially”. The EV producer increased its Model 3 and Modey Y prices in May.
Ford Motor Co’s (F.US) electric Mustang topped Norway’s car sales in May in the first full month of registrations. According to the Norwegian Road Federation, battery electric vehicles made up 60.4% of all new cars sold in Norway last month, up from 43.1% a year ago.
Nio (NIO.US) delivered 6,711 vehicles in May, an increase of 95% compared to a year ago period. The company maintained the delivery guidance of 21,000 to 22,000 vehicles in the second quarter of 2021. Citi upgraded the EV producer to "buy" from “neutral” after those delivery results. In addition to that, analysts raised their sales forecasts for the company.
Nio (NIO.US) stock has experienced an impressive surge following the 2020 stock market crash. Recently the price fell below 50- and 200-day moving average, but bounced off after touching the $30.71 mark. The share price jumped after the delivery update. However, Nio shares are still trading roughly 40% below all-time highs from January. Source: xStation5
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