US OPEN: Wall Street opens higher despite rising COVID-19 cases

• China made a clear commitment to follow Phase One trade deal
• Six US states set daily records for new coronavirus cases.
• AMC Entertainment (AMC.US) stock soars higher

US indices launched session higher amid news that China was set to up its purchases of U.S. farm products to comply with phase one trade deal. This statement muted concerns about U.S.-China trade relations as the two countries exchange bitted rhetoric regarding the pandemic. Meanwhile, number of new COVID-19 cases continue to rise at a record pace in Texas, California, Arizona and Florida and both China and Japan reported new infections. California, Florida and North Carolina urged mandatory mask use on Thursday.  On the data front, the US current account deficit narrowed by $0.1 billion to $104.2 billion in Q1 2020, compared to expectations of a $103 billion gap. It is the lowest shortfall since the second quarter of 2018. S&P 500 and Dow Jones are now about 8% and 12% below their  record  highs from February, while the Nasdaq is approaching its all-time  high from June 10.

 S&P 500 (US 500) broke above resistance at 3119.7 pts. If the current sentiment prevails, the buyers should focus on the next local resistance at 3172.9.3 pts On the other hand, breaking below 3119.7 pts may trigger a bigger downward move toward 3067.9 pts. Source: xStation5

AMC Entertainment (AMC.US) shares jumped over 13% in pre-market trading. Yesterday  CEO Adam Aron told the Wall Street Journal that the company plans to open all of its theaters by July 24. The movie theater chain had to close all of its locations in the U.S. due to the spread of the coronavirus.

AMC Entertainment (AMC.US) launched today’s session with a bullish price gap. If current sentiment prevails, then resistance at $6.72 per share may come into play. On the other hand if sellers will manage to regain control, then local support is located at $ 5.00 per share. Source: xStation5

PG&E Corporation (PCG.US)  shares gained about 1% in extended trading after the company provided a statement regarding the 2018 Camp Fire in California. Company admitted to cause deaths of 84 people in the wildfire, which was caused by its crumbling electrical grid. The company’s interim CEO Bill Smith, mentioned in the statement: “It can never be said too many times: We accept responsibility for our role in the Camp Fire, and all 23,000 employees are committed to making sure our equipment never again causes a catastrophe like this,” Smith said. PG&E will pay a fine of $3.5 million  and $500,000 for the cost of the investigation.

Marathon Petroleum (MPC.US)— Shares  rose 5% in extended trading after Wall Street Journal reported that oil company  is in talks with potential buyers of its Speedway gas stations. Marathon had initially pursued a sale that fell apart early on in the coronavirus pandemic. Last year investors called for Marathon to spin-off Speedway.

Disney (DIS.US) share price was lifted by Wells Fargo from $ 107 a share to $ 118 per share. The analyst maintained his "equal weight" rating on the stock, however, noting "we remain more pessimistic than most on the potential length and depth of the coronavirus pandemic and its impact on Parks operations + Studio production."

CarMax (KMX.US) stock rose over 1% after the company reported better than expected  quarterly figures. Used-car seller reported sales of $3.23 billion for the first quarter, well above FactSet analysts expectations  of $2.71 billion. Comparable sales declined 41.8% on a year-over-year basis, but still came above market consensus forecast of a 51.3% decline.

Slack (WORK.US) stock was downgraded  to “sell” from “neutral,” by  Goldman Sachs. Bank expects an “enduring battle” between Slack's and  Microsoft’s Teams platform for market share. “While we continue to view Slack as a best-in-class team messaging offering that is favored by the technical community, we expect MSFT Teams to continue to try and leverage its packaging within Office 365 to drive increased adoption, thus creating the potential for a more competitive environment,” Goldman said in a note.