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Stocks open slightly higher on Thursday
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Pending home sales fell 4.4% MoM in April (vs exp. +0.8%)
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General Motors set to restart production at several plants
US equity markets opened slightly higher on Thursday after Senate Republicans unveiled a $928 billion infrastructure counteroffer to President Joe Biden. Biden’s latest offer to GOP came in at $1.7 trillion and he has urged Republicans to put at least $1 trillion into an infrastructure package.
Pending home sales fell 4.4% MoM in April. Meanwhile, the consensus estimate suggested an increase of 0.8% MoM. Bank CEOs continue to testify before the US Congress today. Tech stocks are laggards on Thursday as Nasdaq100 (US100) is currently trading slightly below the flatline. Russell 2000 (US2000) is today’s leader as small caps are adding 0.75% at press time.
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US2000 bounced off sharply and the index is currently soaring towards 2,275 pts (the 78.6% Fibonacci retracement of a downward impulse started in late-April and some previous price action). This area may turn out to be the next-short term resistance for market bulls. On the other hand, the 2,240 pts could be the first support to watch in case any pullback occurs (today’s upward impulse started here which may be noticed on lower interval). Source: xStation5
Company News
Ford Motor (F.US) shares jumped to 5-year high after the company held its investor day on Wednesday. The car producer boosted its clean energy vehicle investment plans by $8 billion and intends to have 40% of its fleet fully electric within the next decade. Therefore, the company is said to be ready to take on Tesla and other EV producers. Also, shares spiked in today’s pre-market trading following an upgrade from analysts at RBC Capital, who raised their price target to a Wall Street-high, from $13 to $17.
Boeing (BA.US) and General Electric (GE.US) rose in pre-market trading after Airbus, the world’s largest plane producer, sait that it would increase its A320neo aircraft production by 10% this year. The aircraft uses engines made by General Electric. Earlier this month, Reuters reported that Boeing could boost its Max output to 42 jets per month by the fall of next year, above current target of a an increase to 31 planes per month by the spring of 2022.
General Motors (GM.US) announced that it would restart production at 5 assembly plants that have been idled due to a global semiconductor chips shortage. GM share price jumped almost 3% in pre-market.
Best Buy (BBY.US) rose almost 4% in pre-market as the electronics retailer posted quarterly earnings of $2.23 per share, above the consensus estimate of $1.39 per share. The retailer’s revenue and comparable sales topped estimates as well. The firm boosted its guidance, saying that it expects full-year comparable sales to rise 3% to 6%, compared to a previous forecast range of a fall of 2% to a rise of 1%
Best Buy (BBY.US) spiked at the beginning of today’s session on upbeat earnings and optimistic forecasts. However, the price has already erased some gains. It is worth to notice that shares were not able to break above the area near $123.50 (there was only 1 false breakout). Therefore, it may be seen as the key resistance level for now. Source: xStation5
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