US stocks opened slightly higher on the final trading day of the week. Every major US stock index gained roughly 0.5% after the cash session open. Investors were focused on crucial flash PMI indices from the US which were released 15 minutes after the market open. The data topped analysts’ expectations as PMIs climbed to record levels! Manufacturing PMI for May rose to 61.5 (vs exp. 60.2) whereas services PMI surged to 70.1 (vs exp. 64.5). On the other hand, existing home sales data, released on 3:00 pm BST, missed expectations (5.85M against expected 6.09M). US equities continue to move higher with Russell 2000 (US2000) being the strongest index at press time (+1,24%)
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Create account Try a demo Download mobile app Download mobile appUS100 painted a double bottom pattern in recent days and started an upward impulse on May 19 (Wednesday). The index climbed above the 13,500 pts mark today as US 10-year yield fell towards 1.63%. Should bulls continue to move higher, the area near 13,700 pts could be a major resistance. It is also worth to notice an upward trend line (blue line, H4 interval). After recent declines, this line could potentially serve as a resistance too. Source: xStation5
Company News
VF Corp (VFC.US), the owner of Supreme, Vans and The North Face, fell 8% after the market open as the firm posted mixed full year fiscal 2021 (ended April 3, 2021) results. Fourth-quarter adjusted EPS of 26 cents missed the FactSet consensus for 29 cents. Revenue came in at $2.583 billion against expected $2.509 billion (FactSet consensus). VF Corp says that its supply chain is currently operational. Fewer than 5% of stores in North America are closed while roughly 20% of stores in the EMEA region are temporarily shuttered.
Foot Locker (FL.US) soared 4% after the footwear retailer posted stellar fiscal first-quarter profit and same-store sales beats. For the quarter ended May 1, the company had an adjusted earnings per share of $1.96 while FactSet consensus anticipated $1.12. Sales rose 83.1% to $2.15 billion, also above the FactSet consensus of $1.90 billion. At the same time, same-store sales advanced 80.3% against expected 53.7%. "Our merchandise offering resonated very well with our customers, driving strength in our stores and continued momentum in our digital business," said CEO Richard Johnson.
Foot Locker (FL.US) stock surged 4% after solid earnings. The price has been moving in an upward channel with the 50-day moving average (orange line) serving as a support several times. Source: xStation5
Ford Motor Company (F.US) is forming a joint venture that will build two North American factories to produce batteries for roughly 600,000 electric vehicles per year by the middle of this decade. The deal was struck with SK Innovation, South Korean company that engages in areas such as batteries or electronics materials.
Tesla’s (TSLA.US) CEO Elon Musk said that his company is looking at opening production facilities in other parts of the world, adding that the company was close to establishing a presence in Russia. It is said that Musk was referring to potential Tesla factory in Russia.
Moderna (MRNA.US) gained 1.5% in the pre-market trading after Moderna’s Covid-19 vaccine was officially approved by regulator in Japan and South Korea.
