US OPEN: Wall Street higher on earnings optimism and stimulus hopes

• US lawmakers continue to discuss the next stimulus package
• Coca-Cola (KO.US) reported a 28.5% drop in quarterly revenue
• Philip Morris (PM.US) stock jumped 3.5%

US indices opened in green today amid hopes of further fiscal stimulus and prospects of a coronavirus vaccine. US lawmakers continue to discuss the next stimulus package and the extension of the weekly unemployment benefits to an amount likely lower than $600 a week. Congressional Republicans said that they were working on a $1 trillion relief bill. Also positive earnings reports from companies such as IBM, Coca-Cola, Lockheed Martin, Philip Morris, Novartis and ProLogis lifted market sentiment. However some investors remain cautious about the possibility of a wider lockdown due to a spike in Covid-19 cases in the US and in some hot spots worldwide. New infections continue to surge in Florida, however California is showing signs of improvement, with cases and hospitalizations beginning to stabilize. President Trump will resume holding regular COVID-19 news briefings on Tuesday.

On the data front,  Chicago Fed National Activity Index  rose to a record high of 4.11 in June  rebounding from the record low of -18.09 in April. Meantime Canada's retail sales figures jumped 18.7 % over a month earlier in May 2020, below analysts’ expectations of  20% gain. It was the largest rise in retail trade since series began, amid the easing of coronavirus lockdown restrictions.

S&P500 (US500) managed to break above key resistance level at 3240.8 pts. Should upbeat moods prevail, resistance at 3338.6 pts may come into play. Source:xStation5

Coca-Cola (KO.US) earned 42 cents per share, 2 cents a share above analysts' expectations. Revenue was in line with Wall Street's forecasts however  a year-over-year revenue declined by 29%.

IBM's (IBM.US) stock jumped over 6% in extended trading on upbeat quarterly results. The technology company  earned $2.18 per share excluding items on revenues of $18.12 billion above analysts expectations of earnings of $2.07 on revenues of $17.72 billion.

Tapestry (TPR.US) –  company's CEO Jide Zeitlin resigned due to personal reasons. CFO Joanne Crevoiserat will be acting as interim CEO until a permanent replacement is found. The luxury goods maker also announced its quarterly results exceeded expectations. Official fourth-quarter results for Tapestry are scheduled for release on Aug. 13.

Lockheed Martin (LMT.US) posted better than expected quarterly results. The defense contractor earned $5.79 per share, 7 cents a share above market forecasts.  Revenue also beat expectations. The company also raised its 2020 full-year forecast.

Philip Morris (PM.US)  reported earnings of $1.29 per share, which came in above market expectations by 19 cents a share. Revenue also came in above forecasts. The tobacco producer also provided a better than expected full-year outlook, as overall industry volume rebounds.

Philip Morris (PM.US)  - stock price is testing the upper limit of the symmetrical triangle pattern. Should a break above the trendline occur, upward move may accelerate. Potential target for buyers is located at $78.84 resistance level, which is additionally strengthened by 200 MA (redline). On the other hand, once sellers regain control, the support at $71.25 per share may be at risk. Source: xStation5