• President Trump is planning to impose new tariffs on some EU countries
• IMF is expecting global contraction of -4.9% vs -3.0% in April forecast
• Dell (DELL.US) stock soars higher
• IMF is expecting global contraction of -4.9% vs -3.0% in April forecast
• Dell (DELL.US) stock soars higher
US indices opened lower today, following statements from the US Trade Representative. Trump administration is considering new tariffs on exports worth €3.1 billion and will impact exports from France, Germany, Spain and the United Kingdom. New tariffs would include olives, beer, gin and trucks. Trump administration is also weighing higher duties on products including aircrafts, cheese and yogurt. Also rising numbers of coronavirus infections put additional pressure on the stock market. US reported 36 000 new cases yesterday – the highest number since 1 May. Today California reported 7149 new cases compare to 5019 from yesterday. Also Texas, Florida, Arizona and California saw a new record high number of infections and the total for the US topped 2.3 million. Meanwhile IMF announced that the pandemic has had a more negative impact on the economy than anticipated, and the recovery will take longer time than previously forecast. According to the recent World Economic Outlook (WEO) forecast, global growth might decline –4.9 % in 2020, which is 1.9 % points below the April 2020 forecasts. Meanwhile in 2021 global growth is projected at 5.4 %. This would mean that the 2021 GDP would be 6.5 % points lower compare to the pre-pandemic projections of January 2020.
S&P500 (US500) did not managed to stay above the 3119.7 pts resistance. Today main US index launched session lower. If current sentiment prevails then support at 3067.9 may be at risk. Source: xStation5
Shares of Dell Technologies (DELL.US) and VMware (VMW.US) jumped 18% and 10% respectively after the closing bell on news that Dell is considering options for its $50 billion stake in the VMware. The options include spinning off its 81% stake or buying the rest of VMware.
Dell Technologies (DELL.US) – price is trying to break above the pre-pandemic highs at $53.88 per share. Should upbeat moods prevail, resistance at $62.07 per share may come into play. Source: xStation5Carnival (CCL.US) stock fell1% after market close. Company’s debt rating was cut to “junk” from BBB- to BB-. by Standard & Poor’s. “We expect Carnival’s credit measures to remain very weak through 2021 because of its plans for a gradual reintroduction of capacity and our forecast for continued weak demand,” S&P said in a statement. Rating agency announced that the cruise operator remains on credit watch and could be downgraded again.
PayPal (PYPL.US) shares dropped1.5% after the BTIG downgraded its investment stance on the online payments operator to neutral from buy, citing its valuation.
Beyond Meat (BYND.US) stock dropped about 1% after the closing bell. Yesterday Starbucks (SBUX.US) launched a new Impossible Breakfast Sandwich made with plant-based sausage from Impossible Foods, Beyond Meat’s competitor.
Dick’s Sporting Goods (DKS.US) stock was upgraded to "outperform" from "market perform" by Cowen, thanks to increasing market share as solid growth in e-commerce.
Facebook (FB.US)– the ice cream manufacturer Ben & Jerry’s company joined an ad boycott of Facebook and Instagram, calling on Facebook to stop the platform “from being used to spread and amplify racism and hate”.
Alphabet (GOOGL.US) has been criticized by newspaper publishers, according to the New York Post. The paper said the publishers have told the Justice Department that Google’s market power forces them into unfair agreements.
