US OPEN: Wall Street opens higher despite disappointing claims report

US indices launched today’s session higher amid hopes of for piecemeal stimulus deal. Both President Donald Trump and House Speaker Nancy Pelosi have indicated support for a smaller bill to help the airline industry specifically, even after Trump terminated talks over a larger stimulus package earlier this week. Shares of United, American and Delta airlines were all up more than 2% in premarket trading Thursday. Carnival and Norwegian Cruise Line gained 2.3% and 2.5%, respectively.
Meanwhile the second presidential debate between President Donald Trump and Democratic nominee Joe Biden was supposed to be held virtually on 15th October. However moments after the announcement was made, Trump said he would not participate. “No i’m not going to waste my time on a virtual debate,” he said during an interview on the Fox Business channel. His campaign later said Trump will hold a rally that night instead. On the data front initial jobless claims came above analysts’ expectations, pointing to a slow recovery in the labour market. Continuing claims are now falling more steeply than new payrolls are rising, suggesting that many are leaving the workforce rather than looking for new work.

US30 – buyers managed to break above the upper limit of the triangle pattern. Should upbeat moods prevail, resistance at 28800 pts may come into play. On the other hand, once sellers regain control, the support at 28090 pts may be at risk. Source: xStation5

 

International Business Machines (IBM.US) would like to spin off the managed infrastructure services unit of its Global Technology Services division into a new public company. IBM would like to focus on cloud software and solutions through the separation which is expected to be achieved as a tax-free spin-off to IBM shareholders and completed by the end of 2021.

Eaton Vance (EV.US) which is one of the oldest investment firm agreed to be acquired by Morgan Stanley (MS.US) for $56.50 per share in cash and stock, for a total value of about $7 billion. The news comes just a few days after Morgan Stanley completed its acquisition of E*Trade Financial. Eaton Vance stock surged 47%.

 

Regeneron (REGN.US) and Eli Lilly (LLY.US) shares rose in premarket after both companies filed for emergency usage approval for their Covid-19 treatments.

McDonald’s (MCD.US) announced today its U.S. same-store sales in the third quarter rose by 4.6% well above analysts' expectations of 1.74% increase, partially thanks to company's promotions and marketing campaign. In September, McDonald's offered a deal on rapper Travis Scott’s favorite meal, causing the chain to restrict certain ingredients due to its popularity. With the help of that deal, September had the highest monthly same-store sales in nearly a decade, with growth across all meal times. The fast-food chain also said it is increasing its quarterly cash dividend by 3% to $1.29 per share.

Nikola (NKLA.US)  is trying to rebuild investor confidence ahead of the Nov. 30 expiration of share lockups, according to the Financial Times. Company is hoping that the technology it will present at today’s “Mission Hydrogen” conference will help negate doubts generated by last month’s critical report from short-seller Hindenburg Research.

Coty Inc (COTY.US) shares jumped 6.9% after the cosmetics maker announced the launch of direct-to-consumer websites for Kylie Skin brand in the UK, France, Germany and Australia.