• US stocks launched session in mixed moods
• COVID-19 continues to spread across the US
• Oracle (ORCL.US) stock fell 5%
US indices opened mixed on Wednesday. On one hand, signs of more official stimulus supported hopes of an economic recovery. Also, trial results for dexamethasone, already used to reduce inflammation in other diseases, reduced coronavirus death rates by around a third. On the other hand, concerns about a second wave of coronavirus infections continue to weigh on market sentiment: six U.S. states including Arizona, Florida and Oklahoma saw a record increase in new coronavirus infections on Tuesday as states pushed ahead with reopening. Yesterday Federal Reserve Chair Jerome Powell warned, that a full recovery is unlikely until the public is confident that the disease in under control, as he testified before U.S. lawmakers. The second day of his virtual hearing will take place today in the late afternoon.
Today investors were served with set of data from the US housing market. Building permits in the United States rose 14.4 percent from a month earlier to a seasonally adjusted annual rate of 1.220 million in May 2020, after hitting a five-year low in April and compared with market expectations of 1.228 million. Housing starts in the US increased 4.3 percent to an annualized rate of 974 thousand in May of 2020, below market forecasts of 1,095 thousand and only slightly higher than an upwardly revised 934 thousand in April. Meanwhile mortgage applications in the United States rose 8 percent in the week ended June 12th, following a 9.3 percent jump in the previous week.
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S&P 500 (US500) is trading near the local support at 3119.7 pts. If the current bullish sentiment prevails, the upward move could be extended to the 3218.3 pts handle. However if sellers will manage to take control on the market then support at 2968.3 pts may be at risk. Source: xStation5.
Oracle (ORCL.US) stock fell 5% in extended trading after the company posted its quarterly results. The technology company earned of $1.20 per share excluding some items on revenue of $10.44 billion, while markets expected earnings of $1.15 per share on revenue of $10.65 billion. “Our overall business did remarkably well considering the pandemic, but our results would have been even better except for customers in the hardest-hit industries that we serve such as hospitality, retail, and transportation postponing some of their purchases,” Oracle CEO Safra Catz said in a statement.
Oracle (ORCL.US) stock broke below key support level at $53.47 per share. Should downbeat moods prevail, support at $50.79 per share may come into play. Source: xStation5
H&R Block (HRB.US)—shares whipsawed in extended trading after the company reported its quarterly figures. The tax preparation firm earned $3.01 per share excluding some items with revenue of $1.81 billion, while analysts polled by FactSet expected earnings of $2.82 per share and $1.84 billion in revenue. H&R Block’s adjusted EBITDA this quarter was $819.6 million, which fell short of the analysts’ estimate of $878.9 million.
Southwest Airlines (LUV.US) shares dropped 2% in extended trading after company decided to keep middle seats open on flights through at least Sep. 30. The company will maintain its face mask policy and will deny boarding to any traveler not wearing a mask. Passengers will also be required to fill a health declaration during online check-in and will confirm that they do not have a fever or other symptoms of Covid-19, and have not been diagnosed with, or exposed to the virus in the 14 days prior to travel.
PG&E (PCG.US) shares rose 1% after the closing bell. PG&E pleaded guilty Tuesday to killing 84 people in a 2018 wildfire that decimated the town of Paradise in Northern California. The fire’s cause was pinned on PG&E’s crumbling electrical grid. The company agreed to pay a maximum fine of $3.5 million as well as $500,000 for the cost of the investigation.
Tesla (TSLA.US) signed an three-year agreement with Panasonic, involving the manufacture and supply of automobile batteries at Tesla’s Nevada Gigafactory.
Apple (AAPL.US) - according to Bloomberg, diversity chief Christie Smith has left the company. The move comes amid Apple’s launch of a $100 million Racial Equity and Justice Initiative. Smith had joined Apple in 2017 after 16 years at consulting firm Deloitte.
Amazon.com (AMZN.US) stock was rated “buy” in new coverage at Needham, which believes that Amazon’s media business is worth $500 billion due to “hidden value.” If this is the case then Amazon’s media assets – including Prime Video, Prime Music, and Twitch – worth nearly as much as Amazon’s cloud computing business.
