US Open: Wall Street gains after weaker US flash PMI data

• U.S. indexes gain after market opening. US500 rises 0.6% after weaker than expected flash S&P PMI data
• Nearly 1% drop in oil prices improves Wall Street sentiment, despite Iran comments
• General Electric (GE.US) positively surprises with results and outlook for Aerospace segment
• UPS (UPS.US) and General Motors (GM.US) post quarterly results with gains
• PepsiCo (PEP.US) results disappointed by lower U.S. shipments; Nucor (NUE.US) loses nearly 5% after reporting much weaker earnings

Sentiment in the stock market is gradually improving after the first historically rather shallow correction since the beginning of the year. Analysts at Fannie Mae stressed that the strong economy and elevated inflation strongly suggest that the Fed will maintain restrictive policy for longer. Iran's president, during a visit to Pakistan, stressed that any direct attack on Iranian territory would be met with a response aimed at total victory, over the Israeli state. Wall Street is waiting, for Tesla (TSLA.US) and Visa (V.US) results to be released after the US session.

Weaker than expected US S&P PMI (flash, April)

US S&P Composite flash PMI reading came in 50.9 vs 52 exp. and 52.1 previously

• Manufacturing PMI: 49.9 vs 52 exp. and 51.9 previously
• Services PMI: 50.9 vs 52 exp. and 51.7 previously

Markets reacted to the data with US dollar sell-off and buying spree on S&P 500 futures (US500) as lower than expected data from services signal still possible lower inflation pressure in the future, which gives some at least short-term relief to US stock market today.

In terms of % growth, the stocks of paper packaging manufacturer Kimberly-Clark (KMB.US) and scientific, diagnostic, and electronic tool's manufacturer Danaher Corp (DHR.US) dominate today. Both companies reported financial results today that far exceeded analysts' expectations. Source: xStation5

US500

Futures on the S&P 500 Index (US500) are trading up nearly 0.6% and breaking above the SMA100 and SMA50, on the hourly interval. A short-term, important resistance level is located at 5100 points, where we see the 38.2 Fibonacci retracement of the downward wave from early April and the SMA200 (red line). At the same time, it is uncertain how sustainable the rebound is; volume suggests an advantage for sellers.

Source: xStation5

News from companies

• Abeona Therapeutics (ABEO.US) shares lose 44% after the biotech company's drug for a rare connective tissue disorder failed to gain approval from the Federal Drug Administration.
• Cadence Design (CDNS.US) loses 5% as the semiconductor design software maker delivered a disappointing Q2 forecast.
• Calix (CALX.US) loses because the communications software company issued a weaker-than-expected second-quarter forecast,
• General Electric Co. (GE.US) gains 4% after raising full-year profit forecasts for its aerospace business
• JetBlue Airways (JBLU) loses more than 10% after the company indicated that revenue for the quarter will fall more than analysts expected due to overcapacity in Latin America.
• Nucor (NUE.US) loses more than 6% after competing steelmaker U.S. Steel reported disappointing earnings o the first quarter of the year
• PulteGroup (PHM.US) gains nearly 5% after reporting adjusted earnings per share for the first quarter that topped average Wall Street estimates
• Sherwin-Williams (SHW) loses more than 4% after confirming its full-year adjusted earnings per share forecast.
• Forecasts missed analysts' average estimates.
• Spotify (SPOT.US) is up 12% after the music platform reported higher-than-expected year-on-year growth in total premium subscribers.

Analysts coverage

• First Solar (FSLR US)gains after being upgraded to 'outperform' at Evercore ISI
• Five Below (FIVE US) loses after lowering outlook to 'neutral' at JPMorgan; target price $170
• Roblox (RBLX.US) gains after comments from JPMorgan indicating improved prospects for business monetization