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Equity markets open higher on Friday
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Bond yields move higher as bond rally eases
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Levi Strauss beats estimates amid strong US and China sales
US equities opened higher on Friday, recouping some losses from Thursday’s session. US Treasury yields jumped with the 10-year yield rising to 1.34%, which put an 8-day bond market rally to an end. The bond rally eased with some suggesting that the recent sharp drop in US bond yields was all about technicals. Anyway, all major US indices move higher, the Russell 2000 (US2000) outperforms while the Nasdaq100 (US100) lags behind. Today’s US calendar lacks key economic readings, but some investors will certainly look at the Fed’s Monetary Policy Report (4 pm BST), containing the conduct of monetary policy, economic developments and prospects for the future.
US100 remains in an upward channel (H4 interval) despite yesterday’s sell-off. The index tested the lower limit of the pattern, but rebounded and managed to stay within the channel. Today US100 climbed back above 14,600 pts. One have to keep in mind that the slope of the channel might become a real challenge for market bulls in the near future. If the price breaks below the lower limit of the pattern, the area near 14,580 pts remains the first support level. Source: xStation5
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Levi Strauss (LEVI.US) jumped over 4% in pre-market after the company topped analysts’ expectations. The firm reported adjusted earnings of 23 cents per share, on revenue of $1.28 billion. Wall Street predicted earnings of 9 cents per share on revenue of $1.21 billion. Levi raised its dividend by 2 cents per share, to 8 cents, for the third quarter. The firm’s CFO noted that the company managed to beat both internal and external expectations for top- and bottom-line growth. Results were fueled by strong consumer demand for the denim in the U.S. and China, where sales surpassed 2019 levels.
General Motors (GM.US) spiked over 4% in pre-market after Wedbush rated the stock as an “outperform”, saying that the price could advance more than 50%. Analysts highlighted that “the stock will be re-rated more as a disruptive technology and EV play, rather than its traditional auto valuation.”
Pfizer (PFE.US) announced it would request US emergency authorisation for a third booster dose of its Covid-19 vaccine. The company says that it could boost immunity and possibly protect people from variants. However, the FDA and Centers for Disease and Control issued a statement saying that Americans do not need booster shots yet. Pfizer (PFE.US) gained roughly 0.60% while BioNTech (BNTX.US) jumped 3%.
Levi Strauss (LEVI.US) jumped after upbeat quarterly results. Taking a look at the daily chart, one can see that the $24.50 area served as a support level (it coincides with the 23.6% Fibonacci retracement). It seems that bulls may aim at reaching recent highs now (intraday high at $30.80), which will be the major resistance. Source: xStation5
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