US OPEN: Mixed reports from Dow Jones members

• US futures point to a slightly lower opening on Wall Street

• ECB President Lagarde holds post-meeting press conference

• 2 Dow Jones members reported earnings ahead of session open

Stocks in Asia and Europe dipped on renewed coronavirus concerns. However, Wall Street looks set to once again prove its resilience as futures point to just a slight dip. Earnings continue to be a top theme in the US with 2 Dow Jones members reporting earnings ahead of today’s session and one after market close. Meanwhile, ECB President, Christine Lagarde, is delivering a post-meeting press conference. Let us remind that the Bank left rates unchanged. Here are the key opening remarks from the presser:

• Incoming data in-line with baseline scenario

• Manufacturing sector remains a drag on growth

• Services and construction sectors are resilient

• Labour market continues to support economy

• Near-term growth to be similar to previous quarters

• Trade uncertainty recedes

• Lending to households and companies remains solid

• Signs of inflation picking up

• Weaker growth is limiting pass-through of inflation

• Policy has to remain stimulative due to subdued inflation outlook

Dow Jones (US30) is sliding ahead of the Wall Street session open. The index tests 200-hour moving average at press time (purple line) and in case break lower is delivered, bears may target 29000 pts mark. Near-term resistance can be found at 29140 pts. Source: xStation5

Procter & Gamble (PG.US) reported earnings ahead of the opening bell today. Adjusted EPS for Q4 2019 came in at $1.42, higher than estimated $1.37. However, the company missed revenue forecast of $18.37 billion. as it reported sales of $18.24 billion. The US consumer goods company reported organic revenue growth of 5% YoY (estimate 5.6%) and free cash flow at $3.76 (+14% YoY). Company increased revenue in all segments with the “Baby, Feminine & Family Care” unit being the only one to miss sales estimates. Procter & Gamble now expects core EPS to grow by 8-11% in fiscal-2020 (ends in June 2020), up from 5-10%.

Procter & Gamble (PG.US) pulled back from an all-time high at $127. The stock found support at 50-hour moving average (green line) later on and attempts to break above the zone marked by previous record highs. However, the stock is set to open lower today. Source: xStation5

Travelers (TRV.US) was another Dow Jones member to report earnings ahead of today’s session. Results of the US insurance company matched market’s estimates with core EPS coming in at $3.32 (+55.8% YoY) and revenue at $8.06 billion (+3.4% YoY). Catastrophe losses amounted to just $85 million in Q4 2019, marking a 86% YoY decline. However, the company generated smaller income on its investment portfolio as it amounted to $616 million (-2.2% YoY).

Intel (INTC.US) will report earnings for Q4 2019 after the market closes today. The company is expected to show an EPS of $1.252 and revenue of $19.22 billion. Attention will be drawn to hope Intel copes with chip shortages amid increased demand and on competition with AMD on data centers.

It took a full quarter for Travelers (TRV.US) stock to recover from a plunge caused by release of Q3 earnings. The US insurer released an upbeat report for Q4 but is expected to open below price zone at $141. Having said that, this price zone is likely to be in focus today. Source: xStation5