US OPEN: Wall Street slips as Trump wants to delay elections

US indices opened lower on Thursday, as investors digest today's GDP and jobless claims figures, quarterly earnings results, the Fed decision and a rising numbers of coronavirus cases. US second quarter GDP plunged by record 32.9% while initial claims rose for a second week.  Yesterday FOMC reiterated plans to keep interest rates near zero until the economy sees further improvement. The Fed stressed that the coronavirus is still a serious threat to the economy. Meantime negotiations regarding the further stimulus package have come to a standstill. Nancy Pelosi said Republicans seem to have "a disdain toward working people", CNN reported. On the coronavirus front, US reported over 66k new infections yesterday and the death toll surpassed 150K.

Today President Trump suggested delaying the US election scheduled for November, claiming fraud in mail-in voting. "With Universal Mail-In Voting (not Absentee Voting, which is good), 2020 will be the most INACCURATE & FRAUDULENT Election in history. It will be a great embarrassment to the USA. Delay the Election until people can properly, securely and safely vote???" Trump said via his Twitter account. US states want to make postal voting easier due to public health concerns over the coronavirus pandemic. About half of US states allow any registered voter to vote by post on request.
However according to the U.S. Constitution, the president has no power allowing him to delay the election. This would require an act of Congress - approved by a majority in the Democratic-controlled House of Representatives and the Republican-controlled Senate, which is an unlikely scenario.

On the corporate front, four big tech companies -  Alphabet, Amazon, Apple and Facebook will report their quarterly results after market close. More details can be found in our today’s Stock Market Comment.

S&P500 (US500) failed to stay above the 3240pts resistance level and pulled back. Should downbeat moods prevail, support at 3172.9 pts may come into play. Source: xStation5

 

United Parcel Service (UPS.US) –  posted quarterly earnings of $2.13 per share, well above market estimates of $1.07 a share. Revenue exceeded came in above expectations. The delivery service company benefited from a surge in residential volume due to the pandemic, among other factors, however did not provide further guidance due to economic uncertainty.

 

Procter & Gamble (PG.US) reported quarterly earnings of $1.16 per share, 15 cents a share above analysts’ expectations. Revenue also beat market forecasts. Organic sales jumped 6%, with particular strength in cleaning products boosted by pandemic-related concerns.

 

Qorvo (QRVO.US) shares soared 7% in extended trading after company posted better than expected financial results for its fiscal first quarter of 2021. The semiconductor company’s earned $1.50 per share on revenues of $787 million, while analysts polled by Refinitiv expected earnings of $1.13 per share on revenues of $730 million.

 

Qualcomm (QCOM.US) stock jumped 12% after the closing bell following the release of better than expected quarterly results. The company reported earnings of 86 cents per share, excluding some items, on revenues of $4.89 billion. Analysts polled by Refinitiv expected earnings of 71 cents per share on revenues of $4.81 billion. Qualcomm also announced a patent deal with Huawei.

 

Yum Brands (YUM.US) – owner of KFC, Pizza Hut and Taco Bell brands, reported quarterly earnings of 82 cents per share beating the 54 cents a share consensus estimate. Revenue also came above market expectations while same-store sales fell less than expected, thanks to higher demand for comfort foods during lockdowns.

 

Kraft Heinz (KHC.US) quarterly earnings beat analysts’ expectations by 15 cents a share, with quarterly profit of 80 cents per share. Revenue also  beat market estimates. Organic net sales rose 7.4%, helped by stay-at-home consumers buying more amid the Covid-19 pandemic.

PayPal (PYPL.US) stock rose 5% in extended trading after the online payments firm released its second-quarter financial results. PayPal earned $1.07 per share excluding some items on revenues of $5.26 billion, compared with market expectations of 88 cents earnings per share on revenues of $4.99 billion. “In the midst of the COVID-19 pandemic, digital payments have become more important and essential than ever,” said PayPal CEO Dan Schulman.

 

Cognizant Technology (CTSH.US) shares rose 6% in after-hours trading after company posted upbeat quarterly results. Cognizant reported earnings of 82 cents per share, excluding certain items, on revenues of $4 billion, well above Wall Street estimates of 69 cents per share and revenue of $3.84 billion.