Summary:
- US indices trade higher on the eve of Independence Day
- Tesla (TSLA.US) jumps on record delivery numbers
- Broadcom (AVGO.US) said to be in talks to acquire Symantec (SYMC.US)
The US equity market indices trade higher on Wednesday in spite of a streak of disappointing data that was released earlier today. Note that today’s cash session will end earlier as it is often the case for the eve of Independence Day. Wall Street will close at 1:00 pm EST (6:00 pm BST) and will remain shut until Friday.
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Following higher opening on Monday, Broadcom (AVGO.US) failed to rally further. The company was boosted by US-China trade truce but upbeat sentiment towards the semiconductor companies failed to extend into the later part of the week. The stock plunged at today’s opening and is trading close to the support zone that limited upward moves throughout the major part of June. Break lower could risk declines deepening towards the 200-hour moving average (purple line). Source: xStation5
Broadcom said to be in talks to acquire Symantec
Broadcom (AVGO.US) and Symantec (SYMC.US) can be found among S&P 500 top movers today. Broadcom is trading over 3% lower while Symantec gains close to 14%. What happened? Reports surfaced saying that Broadcom is interested in acquiring Symantec and the two are in advanced talks. The news are based on yet unconfirmed reports of the anonymous insider who warned that the talks may break down. The two companies are said to have not agreed on a price yet but aim to close the deal by mid-July. Broadcom is a major semiconductor manufacturer who looks for opportunities to expand into markets with higher margins. The cybersecurity market in which Symantec operates is said to be one of such markets.
Netflix (NFLX.US) share price is storming the upper limit of the consolidation range that limited stock’s moves this year. This is the last hurdle preventing the stock from retesting ATH at $420 and a break higher could paint a bullish technical signal. However, Netflix traders should keep on guard on 17 July as the company is set to release earnings report for Q2 2019. Source: xStation5
Other company news
Drug distributors are performing well on Wednesday as a group. Recent price hikes by numerous drug manufacturers are said to be the reason behind improved sentiment towards distributors. McKesson (MCK.US) gains 4% while Cardinal Health (CAH.US) and AmerisourceBergen (ABC.US) trade over 3% higher.
Tesla (TSLA.US) is one of the best performing Nasdaq (US100) stocks today. The company announced that it has delivered 95.2k cars throughout the second quarter of the year while production reached 87k vehicles. While in the April-June period there was a lot of allegedly unintentionally leaked emails saying that the company is set for a record quarter in terms of deliveries, the market was rather cautious given the latest streak of senior executives’ departures. Nevertheless, today’s announcement sent Tesla’s shares over 6% higher and back to the vicinity of $240 handle.
Netflix (NFLX.US) is posting a decent gain today as well. The US entertainment company trades higher following an announcement that it will open a new production hub in Europe. Netflix’s new studio will be localized outside London in the Pinewood’s Shepperton Studios. While no financial details were disclosed by Sky, who first reported the news, it is said that the US company plans to open the hub in October.
S&P 500 movers at 4:09 pm BST. Source: Bloomberg
