US OPEN: Wall Street opens higher after consumer spending data

• Dow Jones (US30) on track to erase 2020 losses
• US consumer spending and personal income above estimates
• Coca-Cola (KO.US) announced restructuring plan

US indices launched today's session higher continuing recent strong gains. Both Dow Jones and  S&P 500 gained 0.4% while Nasdaq advanced 0.5%. Investors digest Fed's new monetary policy framework which will allow a more flexible inflation target, meaning the Fed can leave rates lower for a longer period despite rising inflation. On the data front, US consumer spending rose 1.9% in July, well above analysts’ expectations of a 1.5% increase. Personal income  also surprised on the upside, rising 0.4% while Wall Street expected 0.2% drop.

Dow Jones (US30) – yesterday index continued to increase after the speech of Fed chairman Powell and the upward move is being continued today after US open. In case buyers manage to uphold momentum then ATH at 29623 pts may be at risk. On the other hand, breaking below the major support at 28,090 pts  may trigger a bigger downward move. If this case, the nearest support  lies at the upward trendline. Source: xStation5

Coca-Cola (KO.US) –  announced a workforce restructuring plan which will include both involuntary and voluntary job cuts. Also current 17-unit business structure will  be reduced to nine business units.  Coca-Cola is planning to offer voluntary buyouts to 4,000 workers.
Coca-Cola (KO.US) – stock is testing the upper limit of the triangle pattern. If buyers manage to break above it, an upward impulse towards $50.35 per share could be launched. On the other hand, once sellers regain control, the support at 43.25 may be at risk. Source: xStation5

Ulta Beauty (ULTA.US) stock jumped 18% in extended trading on upbeat quarterly figures. Company earned 14 cents in the second quarter, well above analysts expectation of 6 cents per share. Company's  e-commerce operations increased more than 200%, but same-store sales dropped 26.7% compared to a year ago.

 

Workday (WDAY.US)— stock rose over 10% after the company posted its quarterly figures. The company specialized in human resources and cloud software earned 84 cents per share,  up from 44 cents a share in the same quarter the year before. Workday also lifted its guidance for next fiscal year subscription revenue and announced a new co-CEO.

Gap (GPS.US) reported a quarterly loss of 17 cents per share, smaller than the 41 cents a share loss that Wall Street had anticipated. The apparel retailer’s revenue came in above expectations. Company profited from the pandemic-related shift to casual clothing. Gap also sold face masks worth of $130 million.

HP (HP.US) rose 3% in extended trading after company posted better than expected quarterly results. The hardware company earned 49 cents a share, above market estimates of 43 cents. A spike in consumer PC demand partially offset HP’s weakness in commercial printer sales.

 

Dell Technologies (DELL.US) increased over 4% after the company reported a smaller-than-expected drop in quarterly revenue. The company’s revenue declined 2.7% to $22.73 billion from a year earlier, while Wall Street expected a drop to $22.52 billion. Dell noticed higher demand for its notebooks and software products for remote working.

 

VMware (VMW.US)  stock rose 1% after the  reported better-than-expected quarterly earnings. Software company reported earnings of $1.81 per share well above analysts' expectation of  $1.45 per share. The company notice higher demand from the societal trend to work from home and migrate data to cloud.

This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.