US OPEN: Stocks push higher after NFP miss, US100 outperforms

• US stock markets open higher on Friday

• Major US indices near record highs again

• Non-farm payrolls below expectations

US stock markets opened higher on NFP day. Key jobs data for May turned out to be a slight disappointment as non-farm payrolls stood at 559k (vs exp. 675k). However, US indices jumped after the release as equity investors might perceive the report as “bad news is good news” - lack of substantial progress in terms of US labour market means that the Fed could potentially postpone the discussion about tapering. US100 is currently an outperformer as the index is gaining 1.30%. US500 is adding 0.60% thus nearing all-time highs. 

US100 is soaring after today’s NFP miss. The index smashed through 13,605 pts and is currently marching towards 13,735 pts - a key short-term resistance to watch. Market bulls were trying to breach that threshold in recent days, but they were unable to do that (one might spot merely 2 false breakouts on the chart). On the other hand, the mentioned 13,605 pts should serve as the first support while the area at 13,410 pts remains the next critical support zone.

Company News

Broadcom (AVGO.US) posted quarterly profit of $6.62, thus beating estimates by 19 cents a share. The supplier of semiconductor and infrastructure software solutions managed to beat revenue expectations as well. Moreover, the firm issued bullish fiscal-third quarter outlook as the ongoing adoption of 5G technology is said to be key for the company. Broadcom said it expects Q3 revenue of about $6.75 billion, above expectations of $6.6 billion

Lululemon (LULU.US), the athletic apparel and casualwear retailer, posted quarterly earnings of $1.16 per share, above the consensus estimate of 91 cents per share. The company had a net revenue of $1.2 billion, which topped expected net revenue of $1.12 billion. The company has benefited from going back to normal as brick-and-mortar sales rebounded. “Our first-quarter results reflected strength across all drivers of growth, fueled by the continued expansion in our e-commerce business and a rebound in brick-and-mortar stores,” said CEO. 

Lululemon (LULU.US) stock jumped on upbeat results, but its share price quickly pared most gains. As a result, the price returned below the 100-day moving average (green line) at press time. Taking a look at a daily chart, the area near $346.50 seems to be the first resistance to watch. Source: xStation5