• Mnuchin ‘hopeful’ regarding coronavirus stimulus deal
• ADP report above expectations
• Micron Technology (MU.US) stock fall despite better than expected quarterly figures
• ADP report above expectations
• Micron Technology (MU.US) stock fall despite better than expected quarterly figures
US indices launched today’s session higher as investors try to digest the first presidential debate between Trump and Biden and focus on the positive data from the US economy and news regarding additional stimulus. The ADP report showed private businesses added the most jobs in 3 months and above expectations, while GDP contraction in second quarter was revised lower for the second time. The first presidential debate between Trump and Biden raised concerns the result from the November 3rd election will be too close, with no candidate wining by a big margin. Meanwhile Treasury Secretary Steven Mnuchin struck an optimistic tone about reaching a coronavirus aid deal on Wednesday after the stalemate in Washington dragged on for weeks. “I say we’re going to give it one more serious try to get this done and I think we’re hopeful that we can get something done,” Mnuchin said at the Delivering Alpha conference presented by CNBC and Institutional Investor. “I think there is a reasonable compromise here.”
US30 futures fell after the presidential debate, however bulls manage to halt declines and index returned to the local resistance at 27408 pts which is additionally supported by 50 SMA(green line). Breaking above the aforementioned resistance may trigger a bigger upward move towards 28090pts. However in case sellers manage to regain control, then another downward impulse towards 26077 pts could be launched. Source: xStation5
Micron Technology (MU.US) reported quarterly earnings of $1.08 per share while analysts' expected earnings of 99 cents a share. Revenue also came in above forecasts. The chip maker provided a lower-than-expected current-quarter revenue estimate, partly due to the U.S. government ban on shipments to China’s Huawei Technologies.
Micron Technology (MU.US) – stock price broke below the major support level at $49.54 per share which is additionally strengthened by 200 SMA (red line). Declines could deepen if sellers will manage to break below then upward trendline and support located at $48.00 per share. Source: xStation5
Walt Disney (DIS.US) is planning to cut 28,000 jobs in its theme parks division, as the COVID-19 negatively impacts number of park visits and as the company’s flagship Disneyland resort remains closed for the foreseeable future due to restrictions imposed by California.
Moderna (MRNA.US) shares jumped 3% after results from an early stage study showed its coronavirus vaccine candidate in older adults produced virus-neutralizing antibodies at levels similar to those seen in younger adults, a positive as immunity tends to weaken with age.
Dow Inc. (DOW.US) – The materials science company announced plans to reduce its global workforce costs by 6%, although it did not announce how many jobs might be cut. It will take a current quarter charge of $500 million to $600 million in connection with the restructuring.
General Motors (GM.US) will not close its deal to buy a stake in electric truck maker Nikola (NKLA.US) today, according to sources who spoke to CNBC’s Phil LeBeau. Negotiations are still ongoing, however, amid accusations by short-seller Hindenburg Research that Nikola had misled investors about its technology. Nikola has denied those accusations.
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