• US retail sales rose at record pace
• Markets await Fed Chair Powell Testimony
• Lennar (LEN.US) posted better than expected earnings results
US indices opened higher after retail sales for the US jumped at a record 17.7% last month way above analysts estimates of an 8% gain. Announcements of further fiscal and monetary stimulus completely overshadowed a hike in new coronavirus cases in several states and a lower-than-expected rise in industrial production. Yesterday Fed started its Main Street Lending Program and announced it will buy individual corporate bonds while the Trump administration is preparing a nearly $1 trillion infrastructure proposal, including building roads and bridges. Sentiment was also lifted by data showing reduced COVID-19 death rates in a trial of a generic steroid drug. Meanwhile, investors await Fed Chair Powell report to the Congress for further details about the central bank stimulus and plans.
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S&P500 (US500) managed to erase yesterday early losses and soared higher. Today index break above the local resistance 3119.7 pts. Should upbeat moods prevail, resistance at 3218.3 pts may come into play. Source: xStation5
Lennar (LEN.US) reported better than expected second-quarter financial results. Homebuilder reported earnings of $1.65 on revenues of $5.29 billion, whereas analysts polled by Refinitiv had expected earnings of $1.18 on revenues of $5.25 billion. However company's new orders fell 10% and the dollar value of those new orders is down 16%. Company announced that business improved in May and the rebound has continued through the first half of June.
Lennar (LEN.US) stock price jumped based on better than expected quarterly results and is heading towards local resistance at $66.18 per share. If buyers manage to break above it, an upward impulse towards $71.47 per share could be launched. On the other hand, once sellers regain control, the support at $56.49 per share may be at risk. Source: xStation5
McDonald’s (MCD.US) announced its U.S. same-store sales dropped only 5.1% last month as the company reopened dining rooms in its home market. However in other countries temporary closures that shut down drive-thru and delivery service were more painful. The United Kingdom, for example, only began reopening all of its drive-thru locations in June. While U.S. same-store sales shrank 12% this quarter as of May 31, global same-store sales plunged 29.8%.
Tesla (TSLA.US) – Proxy advisor ISS is recommending Tesla shareholders vote against the reelection of board chair Robyn Denholm at the automaker’s annual meeting in July. ISS cited concerns over Denholm’s leadership.
Apple (AAPL.US) – The European Union has opened antitrust probes into the company’s App Store and Apple Pay service in order to verify whether restrictions imposed by Apple violate its competition rules. Tech giant stated that it follows the law in every aspect and embraces competition at every stage. Meanwhile Citi increased company's share price target to a Street high of $400 a share, based on several factors including the upcoming 5G launch and strong growth for wearable technology.
Amazon.com (AMZN.US) introduced technology known as “Distance Assistant,” which aims to provide workers with real-time feedback on social distancing. The technology has been implemented in several Amazon buildings, and the company plans to open-source the software.
DocuSign (DOCU.US)— shares rose 1% in extended trading and hit a new 52-week high yesterday. It was announced on Friday that the electronic signature software company will replace United Airlines on the Nasdaq 100 index on June 22.
Hertz (HTZ.US)— stock dropped 2% after the closing bell. Yesterday the car rental company informed in an SEC filing that it plans to sell up to $500 million in common stock. However, the company, which is going through bankruptcy proceedings, warned investors that this equity will likely be worthless unless those with higher priority in a bankruptcy, such as the company’s debtholders, are paid in full.
