US Futures pare gains - Watch DIS, AAPL, CVS, ATVI, BYND, TSN


The S&P 500 Futures cut some of their gains after a disappointing ADP Jobs Report

Uptrend 1

The S&P 500 Futures cut some of their gains after a disappointing ADP Jobs Report. Yesterday, investors were pleased to hear Senate Minority Leader Chuck Schumer (Democrat., N.Y.) saying that negotiations between Democrats and Republicans on new coronavirus relief measures were in the right direction.

Later today, ISM Services Index (49.6 for July expected) will be published. 

European indices remain strong. July Markit Services PMI (final reading) were released for the Eurozone at 54.7 (vs 55.1 expected), for Germany at 55.6 (vs 56.7 expected), for France at 57.3 (vs 57.8 expected) and for the U.K. at 56.5 (vs 56.6 expected). June European Retail sales were released at +5.7%, vs +5.9% on month expected.

Asian indices closed in dispersed order as Japanese Nikkei and Australian ASX lost ground when Hong Kong HSI and Chinese CSI were up. July Chinese Caixin Services PMI was released at 54.1, below the 56.0 expected.

WTI Crude Oil futures are bullish. The American Petroleum Institute (API) reported that U.S. crude-oil inventories fell 8.6 million barrels last week, the biggest decline since August 2019. Later today, the Energy Information Administration (EIA) will release official crude oil inventories data for the same week (-3.001M bbl expected).

Gold extends record rally as the US dollar weakens and investors bet for new stimulus measures.

Gold rose 20.78 dollars (+1.03%) to 2039.99 dollars while the dollar index declined 0.37pt to 93.014.

U.S. Equity Snapshot

Walt Disney (DIS), the entertainment and media giant, posted third quarter adjusted EPS of 0.08 dollar, beating estimates, vs 1.34 dollar a year earlier. Sales came in down 42% at 11.78 billion dollars, below forecasts. Disney+ subscribers fell short of estimates. The company's theme parks lost 1.96 billion dollars in the quarter compared to a gain of 1.72 billion dollars a year earlier. The stock was upgraded to "outperform" from "neutral" at Credit Suisse.

Source: TradingView, Gain Capital 

Apple (AAPL), the tech giant, was downgraded to "neutral" from "buy" at BofA.

CVS Health (CVS), the pharmacy and healthcare company, is surging before hours after reporting quarterly earnings that beat estimates and raising full year forecasts.

Activision Blizzard (ATVI), one of the world's largest video game publishers, lost ground after hours after hitting a record high on Tuesday. The company warned that "economic uncertainty could have an impact on near-term results". Separately, Activision Blizzard reported second quarter adjusted EPS of 0.97 dollar beating estimates, compared to 0.38 dollar a year ago, on revenue of 2.08 billion dollars, beating forecasts, vs 1.2 billion dollars a year earlier. Moreover, the company raised its full-year outlook.

Beyond Meat (BYND), a producer of plant-based meat substitutes, reported a second quarter adjusted LPS of 0.02 dollar, beating estimates, vs an adjusted EPS of 0.05 dollar a year ago. Revenue increased to 113.3 million dollars up from 67.3 million dollars a year earlier. The Co suspended its full-year outlook until further notice.

Tyson Foods (TSN), the largest US producer of processed chicken and beef, was downgraded to "neutral" from "outperform" at Credit Suisse.

Allstate (ALL), the insurance company, released second quarter adjusted EPS of 2.46 dollars, beating estimates, vs 2.08 dollars a year ago.

Build your confidence risk free

More from Equities

Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.