• Tight race between Trump and Biden
• Weak ADP report
• Uber (UBER.US) and Lyft (LYFT.US) stocks rally
US indices launched today's session sharply higher as investors await the outcome of US presidential election and higher volatility is expected later in the day as there's no clear winner yet and in many states the counting of correspondence votes continues. So far, results showed a tight race between both candidates. Joe Biden swept up 227 electoral votes while Trump picked up 213 votes and won Florida. Biden is leading in Nevada, Arizona, Wisconsin and Michigan but Trump is ahead in Pennsylvania, North Carolina and Georgia. Stocks have also responded positively to signs that the Senate will stay in Republican hands, reducing the prospect of a hefty increase in capital gains tax under a unified Democratic Congress. On the data front ADP report showed that private businesses in the US hired 365K workers in October, well below an upwardly revised 753K in September and analysts’ expectations of 650K.
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US500 – index broke above the major resistance at 3400 pts and is approaching next resistance at 3440 pts. Should a break above occur then upward move toward 3500 pts may accelerate. However if sellers will manage to regain control then support at 3305 pts may be at risk. Source: xStation5
Hilton Worldwide (HLT.US) reported a quarterly earnings of 6 cents per share, compared to analysts' expectations of a 2 cents per share loss. Revenue came in below market estimates as comparable revenue per available room fell nearly 60% from a year earlier.
Scotts Miracle-Gro (SMG.US) – reported quarterly profits of 6 cents per share, which came in 4 cents a share short below expectations. Revenue came in above market estimates. The lawn and garden products company provided an upbeat fiscal guidance for 2021.
Wendy’s (WEN.US) – beat estimates by 2 cents a share, with quarterly earnings of 19 cents per share. Revenue came in below expectations. Global comparable-restaurant sales were up 6.7%, beating the FactSet consensus estimate of a 5.4% increase. The restaurant chain stock fell 2.5% in the premarket.
Lyft (LYFT.US), Uber (UBER.US) stocks rose over 12% in premarket trade after California voters approved proposition 22, which allows these and other “gig economy” companies to classify workers as independent contractors rather than employees.
Uber (UBER.US) launched today’s session with a bullish price gap and is currently approaching local resistance at $42.25. Should buyers manage to uphold momentum then next resistance at $45.83 may come into play. However, if there is a change in market sentiment then nearest support is located at $38.90. Source: xStation5
