• US Stocks break 7-day winning streak
• Macy’s (M.US) shares jumped 13%
• Tiffany (TIF.US) reported poor quarterly results
• Macy’s (M.US) shares jumped 13%
• Tiffany (TIF.US) reported poor quarterly results
US indices opened lower on Tuesday, with the Dow Jones falling for the first time in seven days, as investors decided to took some money off the table after recent strong rally. “Recent data points like the jobs report and not-as-bad-as-feared company updates have fueled the view that the worst of the declines could be behind us,” a team of RBC Capital Markets analysts told clients Monday. “The risk-on trade really is gaining traction. Valuations have spiked to historical highs in many industrial sub-sectors, signaling a strong recovery is potentially taking hold.” But some investors are starting to wonder whether the move as gone too far, too fast considering the economy as just started to reopen. The official economic arbiter in the U.S. declared that the economy entered a recession earlier this year. The National Bureau of Economic Research determined that a “clear peak in monthly economic activity” occurred in February, which ended longest expansion in history. Investors are looking forward to the Fed monetary policy decision on Wednesday. Most likely FED will keep the funds rate steady at 0-0.25% and re-commit to using the full range of tools.
S&P 500 (US500) failed to break above the local resistance at 3218.3 pts. As long as price sits below it downward move towards 3159.7 pts looks more probable. Source: xStation5Macy’s (M.US) shares jumped 13% in extended trading after the company managed to raise $4.5 billion in debt. Company is expecting to have sufficient liquidity to survive the coronavirus pandemic and address its business needs, including funding operations and purchasing new inventory, according to a company statement. Company also reported a preliminary first-quarter loss of $2.03 per share, smaller than the analysts' expectations of a $2.82 per share loss. Revenue came in line with expectations, and within the range that the retailer had given on May 21.
Macy’s (M.US) – launched today’s session with bullish price gap. Should upbeat moods prevail, resistance at $12.36 per share may come into play. However if market sentiment changes, local support can be found at $ 7.27per share. Source: xStation5
Tiffany (TIF.US) posted a quarterly loss of 53 cents per share, while analysts’ expected 3 cents per share profit. Revenue was also well below forecasts, with comparable-store sales falling a greater-than-expected 44% which was caused by pandemic-related worldwide store closures.
Stitch Fix (SFIX.US) shares dropped fell 6% in extended trading after the company posted its quarterly earnings. Company reported a loss of 33 cents per share on revenue of $372 million, wider than analysts' estimates of 16 cents per share loss with revenue of $407 million, according to Refinitiv. Compared to last year number of active clients increased by 9% to 3.4 million.
Coupa Software (COUP.US) - stock fell 4% in extended trading after the technology company reported its first-quarter earnings. The company earned of 20 cents per share excluding some items on revenue of $ 119.2 million, well below analysts expectations of 7 cents per share with revenue of $ 111.5 million, according to Refinitiv. The company presented strong guidance on earnings and revenue for both the next quarter and the whole fiscal year.
Carnival (CCL.US) stock rise 6% after the market closed. Cruise line shares surged on Monday as the economy’s reopening progress gave investors optimism that cruise bookings will recover from the serious blow from the coronavirus pandemic.
