US OPEN: Wall Street higher after upbeat PMI data

• Upbeat PMI figures
• Biden will seek to raise taxes on richest Americans
• Kimberly-Clark (KMB.US) stock sinks after weak Q1 figures

Positive moods can be spotted on Wall Street today as investors digest latest PMI figures, mixed bag of quarterly earnings and concerns over tax hikes. Recent news showed President Biden is considering raising tax rates to 39.6% for wealthy individuals and companies (earnings above $1 million) in order to pay for social spending. This would be a massive increase given the current capital tax rate is 20%. On the data front, preliminary Markit manufacturing PMI jumped to 60.6 in April  from 59.1 in March, beating market forecasts of 60.5, while services PMI reached a new all-time high of 63.1 in April, from 60.4 in the previous month. Sales of new US single-family homes rose 20.7% to a seasonally adjusted annual rate of 1021k in March, following an upwardly revised 846k in February and above analysts estimates of 886k. It is the highest reading since August of 2006.

US2000 is testing major resistance at 2248 pts which coincides with 200 SMA (red line) and lower limit of the triangle formation. Should break higher occur, then upward move may be extended to the 2286 pts level. On the other hand, if sellers will manage halt advances, then nearest support lies at 2207.3 pts. Source: xStation5

Kimberly-Clark (KMB.US) stock fell more than 6.0% in premarket  after the company posted disappointing quarterly figures. Net sales of $4.7 billion decreased 5 % compared to the year-ago period, including an organic sales decline of 8%.  Adjusted earnings per share were $1.80 in 2021 compared to $2.13 in 2020. The consumer products company said it faced a number of challenges during the quarter, including supply chain issues and difficult comparisons to a year ago when consumers stocked up on items as the pandemic began. Kimberly-Clark provided a full-year forecast that came in below Wall Street consensus. 

Kimberly-Clark (KMB.US) stock launched today’s session sharply lower and is testing 50 SMA (green line). If current sentiment prevails support at $128.09 may come into play. On the other hand, if buyers will manage to regain control, then another upward impulse may be launched towards resistance at $140.85. Source: xStation5

Intel (INTC.US) reported quarterly results after the closing bell Thursday which showed beating earnings and sales but the company expects lower second-quarter earnings.

Boston Beer (SAM.US)  brewer stock jumped more than 7.0% in premarket action after company posted better than expected quarterly figures. Earnings of $4.58 per share, beat analysts' estimates of $2.39 per share. Revenue also came in above market projections thanks to higher sales of it's Truly hard seltzer brand.

Mattel (MAT.US) stock rose nearly 7% in premarket after the toy maker reported record 47% sales growth for its latest quarter compared to a year ago. Mattel reported a quarterly loss 10 cents per share while analysts expected a much higher loss of 35 cents. Revenue of $874.2 million easily beat market estimates of  $684.2 thanks to strong sales of toys like Barbie dolls and Hot Wheels cars.

American Express (AXP.US) stock fell more than 2% in premarket after the financial services company posted mixed first-quarter figures. Company earned $2.74 per share, beating the consensus estimate of $1.61 a share while revenue came in slightly below market estimates. The bottom line was helped by $1.05 billion in credit reserve releases as the macroeconomic environment improved. 

Honeywell (HON.US) shares fell 1.5% in premarket despite the fact that the industrial conglomerate posted upbeat quarterly figures. Company earned $1.92 per share while analysts expected earnings of  $1.80 per share. Revenue also came in above Wall Street estimates. Sales for Honeywell’s aerospace segment declined, but it saw strength in its safety and productivity business.