• US Manufacturing PMI in line with expectations
• House passes short-term spending bill to avoid government shutdown
• Nike (NKE.US) stock rallies after earnings report
US indices are trading mixed during today’s session as investors digest recent comments from Fed representatives that point to a sluggish economic recovery while Fed Chair Powell reiterated to Congress that the US needs further fiscal stimulus. Fed Chair will testify again on the CARES Act on Wednesday. The House of Representatives passed a stopgap funding bill to keep the federal government running through Dec. 11, and the Senate is also expected to pass the bill. However, this may be the full extent of cooperation on Capitol Hill, with no signs of compromise over a new coronavirus relief bill. On the data front IHS Markit US Manufacturing PMI increased to 53.5 in September of 2020 from 53.1 in August, beating forecasts of 53.1. The reading pointed to the strongest expansion in factory activity since January of 2019.
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US30 is testing the local resistance level at 27408 pts which is additionally strengthened by 50 MA (green line). If buyers manage to break above it, an upward impulse towards 28090 pts could be launched. However if sellers will manage to halt advance here then next support at 26077 pts could be at risk. Source: xStation5
Nike (NKE.US) stock jumped over 12% in extended trading after the company reported better-than-expected fiscal first quarter earnings. Nike earned 95 cents per share on revenue of $10.59 billion well above analysts’ expectations of 47 cents per share on revenue of $9.15 billion. Digital sales surged 82%.
Nike (NKE.US) stock surged after company posted positive quarterly earnings. Should upbeat moods prevail, resistance at $120.61 may come into play. Source: xStation5
Tesla(TSLA.US) stocks were down 5.5% as investors were disappointed with its big battery event Tuesday evening after the CEO Elon Musk said it could take 3 years to reduce its battery costs.
Stitch Fix (SFIX.US) shares plunged more than 14% in extended trading after the personalized shopping company posted disappointing quarterly results. Company lost 44 cents per share, 28 cents below analysts’ estimates. Stitch Fix reported revenue of $443 million, while analysts’ expected $415 million. Stitch Fix said it has 3.5 million active clients, an increase of 9% year-over-year.
General Mills (GIS.US) reported quarterly earnings of $1.00 per share, while analysts' expected earnings of 87 cents a share. Revenue also came in above estimates as demand for at-home packaged foods remained elevated due to the Covid-19 pandemic. The food producer also announced a 4% increase in its quarterly dividend to 51 cents per share.
KB Home (KBH.US) stock rose almost 4% in extended trading on Tuesday after company posted better-than-expected third quarter results. Home builder earned 83 cents per share on revenue of $999 million while markets expected earnings of 53 cents per share on revenue of $893 million.
