US OPEN: US indices accelerate the upward movement

At the beginning of the week, global stock markets clearly struggle for direction. European indices are trading slightly higher. However, major US indices opened mixed. At press time, DJIA, S&P 500 and Nasdaq are accelerating the upward movement and all these indices are trading above the flatline (even though Nasdaq was down roughly 1% today).

In recent days more than half the states across the US have been reporting spikes in infected people. Florida reported a record 9,636 cases on Saturday. Therefore some counties there decided to close their beaches for the 4 July weekend as such places are said to be the reason behind the growing number of Covid-19 cases. 

The National Association of Realtors published its monthly report at 03:00 pm BST. Pending home sales in the US rose in May a staggering 44.3% MoM vs expected 18.9%. The surge of that scale was never recorded in the history of the report (since 2001). Nasdaq (US100) has been trading in a tight range today. As the number of Covid-19 cases is on the rise, one should pay attention the $9,747 level (pre-pandemic ATH). On the other hand, $9,890 area may be treated as a short-term resistance due to several previous price reactions in that zone. Source: xStation5

BP (BP.US) announced that it will sell its global petrochemicals business for $5 billion. The buyer is INEOS company. The transaction is a part of BP’s plan to sell off some $15 billion in assets in order to cut costs. Moreover, BP aims to transition itself into a clean-energy focused organisation. 

Gilead Sciences (GILD.US) stated today that a five-day remdesivir treatment will cost $3,120 for a typical US patient with commercial insurance. Treatment in developing countries will be even less expensive as Gilead Sciences is expected to sell the drug for $390 to per vial to governments - meaning that a five-day treatment (using six vials) would total $2,340. As a result, Covid-19 drug will be priced “well below” its market value - emphasised CEO Daniel O’Day.  

Boeing (BA.US) is surging around 8% today. The Federal Aviation Administration is going to test flights of its grounded 737 MAX aircraft as early as this week. The jet has been grounded for the past 15 months following two crashes in late 2018 and early 2019. Testing will find out whether the changes meet FAA certification standards. 

Boeing (BA.US) lost roughly 70% due to February-March sell-off. Shares are still relatively low which should be no surprise - airline industry has been devastated due to global pandemic. Fundamental factors seem to have a dominant role in this case. Nevertheless, $170 area may be treated as a near-term support. Source: xStation5