US OPEN: Wall Street open higher

• US stocks attempting to recover from previous session’s losses
• Crude prices  rebound
• Netflix (NFLX.US) results above expectations

 

US indices opened higher at today as rebound in oil crude prices  improved market sentiment. The June contract for WTI oil rose towards $13.5 a barrel after yesterday record crash.

U.S. Senate  approved another $484 billion stimulus package and passed the bill to the House of Representatives for a final vote later this week. President Trump said his administration is working on a plan to make funds available to help the oil industry. Saudi Arabia pledged to take additional actions to stabilize the situation on the oil market. Yesterday OPEC+ members had an unscheduled conference call although no new decisions were made. President Donald Trump imposed a two-month ban on green card issuance, with a second, more restrictive executive order further reducing immigration, as well as additional extensions of the ban on permanent residency visas possible.

The number of coronavirus cases in the US is approaching 820 000  and death toll surpassed 45K. Missouri became the first state to sue the Chinese government over coronovirus impact, arguing that the Chinese did little to stop the spread of the pandemic which led to economic losses in this state. On the earnings front, Delta Airlines, AT&T and Baker Hughes quarterly results came below expectations.

S&P500 (US500) rebounded after two days of losses. If the current sentiment prevails, then resistance at 2904.6 pts might come into play. Local support is located at 2648.0 pts. Source:xStation5

 

Netflix (NFLX.US) reported EPS of $1.57 (exp. $1.836) and revenue of $5.768 billion (exp. $5.740 billion). Company The streaming service’s  reported a big jump in subscriber growth in the first quarter. Netflix said it expected that pace of growth to slow.  Company added 15.8 million subscribers in the quarter, almost two times more than analysts expected.

After release of Q1  earnings Netflix (NFLX.US) bounced of the  resistance level at $451.45 per share. Should a break above occur, upward move may accelerate. On the other hand, breaking below  support at $394.63 per share will invalidate the bullish scenario. Source: xStation5  

 

Chipotle Mexican Grill (CMG.US)  shares rose 4% in extended trading after company’s earnings of $3.08 per share beat analysts’ estimates of $2.90 per share. Chipotle announced that digital sales more than doubled in March, allowing the company to post positive same-store sales growth as Covid-19 forced restaurants to temporarily suspend dine-in service.  The restaurant chain’s revenue of $1.41 billion was in line with analysts expectations.

Chipotle Mexican Grill (CMG.US) share price managed to break above the key support level at $724.89 per share and is currently testing resistance at $845.25 per share.  In case of a break higher next resistance can be found at $940.75 per share. Source: xStation5

 

Delta Air Lines (DAL.US) reported 51 cents per share loss for the first quarter, less than the 70 cents a share Wall Street had anticipated. Revenue was also lower than expected and fell 18% from the same time last year. Delta Air Lines is hoping to receive support from the CARES Act. However shares rose 3.5% in extended trading after the company announcement that low oil prices and cost reduction measures will cut its expenses by about half in the current-quarter.

Delta Air Lines (DAL.US) price trades in a range between $22.71 per share and $26.48 per share since the beginning of April. Sharp break out from the consolidation zone may lead to bigger price movements. Source:xStation5

AT&T (T.US) reported quarterly earnings of 84 cents per share, slightly below analysts estimates. Revenue came in below Wall Street forecasts. The company withdrew its full-year forecast as the spread of the pandemic is clouding its financial outlook.

SNAP (SNAP.US) shares soared 18% in extended trading after the company reported better then expceted first-quarter revenue figures. The social media platform revenue of $462 million beat analysts expectations of $430 million. The company also reported increasing user numbers. “Snapchat has always been focused on helping people build and maintain their friendships, which is especially critical as people practice physical distancing and shelter in their homes,” said Snap CEO Evan Spiegel in his prepared remarks. However company posted a loss of 8 cents per share in the first quarter. Market expected a loss of 7 cents per share.

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