• 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: xStation5Coca-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: xStation5Ulta 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.
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.
UK inflation boosts chance for rate cut, as risk finally stabilizes
Daily summary: Wall Street tries to rebound 📈Amazon and Microsoft under pressure of Rotschild & Co Redburn
Home Depot shares slide 4% on outlook cut citing weakening consumption 📉
📌US500 loses 1%
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