US OPEN: Wall Street surges higher on surprisingly strong NFP report

 

US indices launched final session of the week sharply higher, continuing big gains on the week, after the today's Non-Farm Employment Change report came in much better than expected. Unemployment rate came in at 13.3% for the month of May  well below analysts’ expectations of 19.5% . Overall employment rose by 2.5 million last month while markets expected a decline of more than 8 million jobs. Shares of the airlines companies rose in premarket trading, as the industry added more summer flights. Casino stocks gained as Las Vegas began to open this week. For the week, the Dow Jones gained 8.1% so far, the S&P 500 near 4.3% and the Nasdaq 2.2%.

 

Gap (GPS.US)—  stock plunged 7% in extended trading after company posted its financial results for the first quarter. Gap said it lost $932 million, or $2.51 a share, in the quarter, versus a profit of $227 million, or 60 cents a share, in the year-ago period. The clothing retailer’s reported revenue of $2.11 billion, below analysts’ expectations of $2.30 billion. Its sales sinked 43% as the company was forced to close stores due to a pandemic. At the moment 1,500 stores are open in North America. The company is planning to reopen the majority of its shops this month, according to a statement from Gap President and CEO Sonia Syngal. Online sales alone rose an "encouraging" 40% in April and more than doubled in May, Gap said. "This online momentum, enabled by new omni-capabilities that have expanded the way customers can shop with us, leaves us well-positioned to fuel our brands going forward," Sygnal said. Gap also informed that 20 of the company’s stores sustained damage due to the recent riots.

Gap (GPS.US)  launched today’s session with a bullish price gap, despite weak quarterly results. Shall upbeat moods prevails, resistance at $13.06 per share may come into play. Source: xStation5

 

Uber (UBER.US) has launched a feature of its Uber Eats food delivery app that lets U.S. and Canadian customers easily find and order food from black-owned restaurants for the rest of the year with free delivery. The introduction of the feature follows nationwide protests over the death of George Floyd while in police custody.

 

Broadcom (AVGO.US) stock rose 1% in extended trading after company reported better than expected financial results. The semiconductor company earned $5.14 per share excluding some items, which was in line with market expectations.  Revenue of $5.74 billion came in above analysts’ expectations of $5.69 billion, according to Refinitiv. Broadcom provided  guidance for the next quarter  that “reflects a surge in demand from cloud, telecom and enterprise customers, offset by supply chain constraints and an expected substantial reset in wireless,” according to a company statement.

 

Slack Technologies (WORK.US) shares plunged 15% in extended trading after the company reported its first-quarter earnings. The workplace communication platform  lost  2 cents per share excluding some items on revenue of $201.7 million, while analysts polled by Refinitiv expected a loss of 6 cents per share with revenue of $188.1 million. The company posted a record number of 12,000 net new paid customers. However, the company’s 50% boost in revenue from last year was not much greater than the 49% increase seen in the previous quarter, suggesting the pandemic is not sparking as much growth for Slack as it is for other companies that make it easier to work from home.

 

RH (RH.US) shares rose in extended trading after company provided its first-quarter results. The home furnishings retailer  earned $1.27 per share excluding some items on revenue of $482.9 million, while analysts polled by Refinitive expected earnings of 81 cents per share with revenue of $480.6 million. Company announced that its business  improved last month and core business demand increased approximately 7% compare last year.  Yesterday RH stock hit a new 52-week high.

 

DocuSign (DOCU.US)  stock rose 3% in extended trading after the company posted its  first quarter earnings. The digital transaction platform earned 12 cents per share excluding some items on revenue of $297.0 million, above  analysts’ expectations of 10 cents per share on revenue of $281.1 million. DocuSign presented strong guidance on revenue for the second quarter and fiscal year.

 

PagerDuty (PD.US) stock fell 5% in extended trading after the company posted its second-quarter financial results. The cloud computing company’s stock lost  4 cents per share excluding some items on revenue of $49.8 million, while analysts expected a loss of 8 cents per share with revenue of $49.8 million, according to Refinitiv.