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Wall Street opens higher ahead of a long weekend
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Core PCE above expectations (3.1% YoY vs exp. 2.9% YoY)
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Chicago PMI surged to 75.2 (vs exp. 68.0)
US equity markets opened higher on Friday, heading for a winning week. Investors were focused on a set of economic data from the United States, with inflation figures being the most important data. Core PCE for April, which is the Fed’s favourite inflation gauge, surged to the highest levels since 1992 (3.1% YoY) against the consensus estimate of 2.9% YoY. Investors are still set to focus on today’s revision of Michigan inflation expectations data (3:00 pm BST) amid rising inflationary pressure. Meanwhile, Chicago PMI for May surged to 75.2 (vs exp. 68.0), the highest print since... 1973!
Traders should remember that Americans will celebrate Memorial Day on Monday, therefore US cash markets will not operate and CFDs based on US indices will close earlier than usual. Trading hours of some commodities will be changed as well.
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US30 climbed towards 34,600 pts ahead of a long weekend in America. The index is trading slightly higher on the day, hovering around the 78.6% Fibonacci retracement of a downward move started on May 10. Taking at look at H4 interval, all-time highs near 35,000 pts may be seen as the main target for market bulls as there is no clear resistance level between current levels and mentioned all-time highs. On the other hand, the area at 34,400 pts could be the first support if sellers regain control. Source: xStation5
Company News
Salesforce (CRM.US) rose more than 5% in pre-market trading after the company reported earnings that topped expectations. The maker of cloud-based customer relationship software posted quarterly revenue of $5.96 billion (+22% YoY), above the consensus estimate of $5.89 billion. Adjusted EPS stood at $1.21 per share (vs $0.70 a year ago) against expected $0.88 per share. Salesforce boosted its fiscal-year outlook, saying that adjusted earnings for the year would be $3.79 to $3.81 per share, higher than Wall Street estimates.
Salesforce (CRM.US) shares jumped after US market open on upbeat results and boosted outlook. The price climbed above a downward trendline and returned above the 200-day moving average. Should this upward impulse continue, traders might want to focus on previous local highs as potential resistance levels.
Dell Technologies (DELL.US) earned $2.13 per share for the first quarter and topped expectations of $1.61 per share. The computer maker managed to beat the revenue estimate as well ($24.5 billion vs exp. $23.4 billion) amid strong PC sales. “There has been a substantial acceleration in digital transformation across the globe, and you can see it in our results,” said Dell’s COO Jeff Clarke. However, Dell shares were falling slightly in pre-market trading as some might fear that PC sales have already peaked.
Costco (COST.US) fell 0.5% in pre-market despite better-than-expected quarterly results. The company earned $2.75 per share versus the consensus estimate of $2.32 per share (consensus gathered by FactSet). Costco’s CFO stressed that the retailer was seeing higher costs for products and higher labour costs, saying that “inflationary factors abound”.
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