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Wall Street jumps on positive outlook for Trump's health
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US2000 approaches resistance at 1,565 pts
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ISM non-manufacturing for September beats expectations
Wall Street, along with other equity markets, is trading higher at the beginning of a new week. Upbeat news on Trump's health outlook are keeping stock markets higher. Donald Trump may be discharged from a hospital as soon as today after testing positive for coronavirus on Friday. Decision will be made later today if it is negative, Trump is likely to be discharged tomorrow.
Russell 2000 (US2000) is rallying today, along with other US indices. Small-cap index is approaching the resistance zone at 1,565 pts, which is marked with the 78.6% retracement of the downward correction started in the first half of August. A break above this hurdle would put US2000 on track to retest post-pandemic highs near 1,600 pts. Source: xStation5
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Create account Try a demo Download mobile app Download mobile appA new momentum was injected into US stimulus talks after Donald Trump was diagnosed with Covid-19. Attention of US society and politicians was drawn to Covid-19 pandemic after Trump tested positive and both Republicans and Democrats say they have moved closer on sticking points. However, a caution is needed as this is not the first time we hear negotiators getting closer to the agreement.
In other news, US ISM non-manufacturing index for September has been released at 3:00 pm BST. Release surprised to the upside with headline index rising from 56.9 to 57.8 pts. Market expected a drop towards 56.2 pts. Equities received a boost following the release.
Company News
While numerous major oil companies already announced they will reduce output and try to bring down net emissions, ExxonMobil (XOM.US) remained silent on the issue. According to a Bloomberg report, the US oil supermajor may be heading into a completely opposite direction. Bloomberg claims Exxon's $210 billion investment strategy envisages annual emissions rising 17% by 2025.
Regeneron (REGN.US) is trading higher today. The company benefits from positive media reports on the health outlook for the US President, Donald Trump. Trump received coronavirus treatment developed by Regeneron and his health is said to have improved afterwards.
Bristol-Myers Squibb (BMY.US) announced that it will acquire MyoKardia, the US heart drug maker. Bristol will pay $225 a share, representing 59% premium over Friday's closing price. The acquisition will help Bristol diversify away from oncology, its recent field of focus. Total value of the deal amounts to $13.1 billion and will be financed with cash.
Regeneron (REGN.US) broke above the short-term triangle pattern today after it was revealed that the US President is treated with a drug developed by the company. Stock tested resistance zone at 61.8% retracement of a downward move started in July but failed to break above it. Should share price continue to erase gains, a test of the support at 38.2% retracement ($588) cannot be ruled out. Source: xStation5
