• TESLA (TESLA.US) shares plunged over 3%
• Cardinal Health (CAH.US) opened with a bullish gap
US indices opened lower, as optimism over the easing of lockdown restrictions faded amid concerns regarding second wave of infections in China, South Korea and Germany. Rate of new infections in Germany accelerated after the country started to ease coronavirus-related measures, while China's reported the highest daily increase in new cases since April 28th. South Korea annouced that number of infections had surged to a one-month high. Meanwhile, Italy, France and the UK all reported the fewest COVID-19 deaths since March. Stocks that would benefit most from reopening led the losses in premarket trading including airlines, retailers, cruise lines and casinos. Negative earnings reports from hotel operator Marriott and concern about Tesla's falling sales in China also worsened market sentiment.
Yesterday, White House officials said that informal talks with Republicans and Democrats regarding additional aid package have started after recent NFP report showed loss of 20.5 million jobs due to the pandemic and further declines are expected in the coming months. Meanwhile, Apple announced it will start to reopen US stores this week.
S&P500 (US500) pulled back from the resistance level at 2968.3 pts due to concerns regarding a second wave of coronavirus infections. Should downbeat moods prevail, support at 2828.3 pts may come into play. Source: xStation5 Tesla (TSLA.US) – files a lawsuit to be allowed to reopen its Fremont factory, and subsequently said it had “begun the process of resuming operations.” Company decided to take legal actions after CEO Elon Musk threatened to move the factory out of California, criticizing government orders that businesses remain closed. Tesla's stock opened 3.4% lower.
Tesla (TSLA.US) shares opened with a bearish gap and the price may be heading toward local support level at $762.23 per share. Source:xStation5.
Cardinal Health (CAH.US) – reported first quarter earnings of $1.62 per share, well above analysts’ expectations of $1.43 a share. The drug distributor's revenue also came in above forecasts. Company reported increased volume due to the coronavirus pandemic, but it does expect a significant net negative impact to second- quarter results.
Cardinal Health (CAH.US) opened with a bullish price gap and is currently testing major resistance level at $52.83 per share. Next resistance is located at $55.54 per share. However if bears will manage to regain control, then price may be heading towards support at $46.22 per share. Source: xStation5
Marriott (MAR.US) – earned 26 cents per share for the first quarter, well below the consensus estimate of 80 cents a share. Revenue came in below market expectations. The hotel operator announced that its business was improving in greater China, and stabilizing in the rest of the world although at extremely low levels.
According to The Wall Street Journal, Intel (INTC.US) and Taiwan Semiconductor (TSM.US) are in talks with the US administration about building new chip factories in the U.S., amid growing concerns about the reliability of Asia-based supply chains.
Amazon.com (AMZN.US) is considering a possible purchase of the AMC Entertainment (AMC.US) - movie theater operator, according to a report published by the UK’s Mail newspaper. However it is not clear whether talks between both companies are still going on.
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