• US stocks lack direction
• China is planning to impose new national security legislation on Hong Kong
• Alibaba (BABA.US) quarterly results beat estimates
• China is planning to impose new national security legislation on Hong Kong
• Alibaba (BABA.US) quarterly results beat estimates
US indices launched today's session slightly lower, as rising tensions between China and the U.S. offset the increasing optimism around a potential coronavirus vaccine. Beijing is planning to impose new national security legislation on Hong Kong after last year’s burst of anti-government protests in the city. President Trump in response said that the US would react “very strongly” against an attempt to gain more control over Hong Kong. Meanwhile, the Chinese Premier Li said at the National People's Congress that the country’s armed forces will safeguard the China sovereignty, security and development interests. Beijing also opted against setting a GDP target for 2020 due to the negative impact of the coronawirus on the world's second-largest economy. Meanwhile Dr. Anthony Fauci said he is cautiously optimistic about Moderna's coronavirus vaccine.
This week S&P 500 (US500) is consolidating near the major resistance at 2968.3 pts, which is additionally strengthened by 200 MA(redline) If buyers manage to break above it, an upward impulse towards next resistance at 3159.7 could be launched. On the other hand, once sellers regain control, the support at 2828.3 pts may be at risk.Alibaba (BABA.US) reported better than expected fiscal results for its fiscal fourth quarter. The China-based e-commerce giant topped $1 trillion in gross merchandise volume for the first time in the just-concluded fiscal year. Company reported a significant increase in online shopping due to the pandemic.
Alibaba (BABA.US) shares are trading lower despite good quarterly results. Company's quarterly results were overshadowed by fears of renewed tension between the U.S. and China. Price dropped below the local resistance at $212.18 per share and is heading towards local support at $190.52 per share. However, before this level can be tested, market bears have to deal with the uptrend line and 200 MA (redline). Source: xStation5.Foot Locker (FL.US) reported quarterly loss of 67 cents per share, wider than the 25 cents a share loss that analysts' were expecting. Company's revenue also came in below estimates. Sales figure recorded a significant 42.8% drop. Foot Locker has also temporarily suspended its quarterly dividend.
Foot Locker (FL.US) – launched today’s trading session lower. Should downbeat moods prevail, support at $21.06 per share may come into play. Local resistance can be found at $29.57 per share. Source: xStation5Nvidia (NVDA.US) released its first-quarter financial results. Company earned $ 1.80 per share excluding some items on revenue of $ 3.08 billion, while Wall Street expected earnings of $ 1.69 per share with revenue of $ 3.00 billion, according to Refinitiv. Nvidia revenue rose 39% compare to last year. Shares of the technology company dropped 1% in extended trading.
HP Enterprise (HPE.US) reported lower than expected second-quarter earnings. Company earned22 cents per share excluding some items on revenue of $6.01 billion, while analysts polled by Refinitiv expected earnings of 29 cents per share on revenue of $6.30 billion. Company’s shares fell 5% in extended trading.
Ross Stores (ROST.US) reported a loss of 87 cents per share on revenue of $1.84 billion, while analysts polled by Refinitiv anticipated earnings of 3 cents per share on revenue of $2.04 billion. Company announced has reopened about 700 stores since May 14.The retailer’s stock fell about 3% in extended trading.
Deere (DE.US) – reported second-quarter financial results of $2.11 per share, which came in above market expectations of $1.62 a share. Revenue beat estimates as well. The construction equipment maker is expecting that sales will fall 30% to 40% this year due to the uncertainties caused by the coronavirus.
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