US Futures bounce, watch ADBE, TSLA, GM, PVH, LULU
Jean-Christophe Rolland June 12, 2020 12:52 PM
The S&P 500 Futures are posting a rebound after they suffered the worst sell-off since March 16
The S&P 500 Futures are posting a rebound after they suffered the worst sell-off since March 16, as investors were concerned about resurgence in coronavirus infections and discouraged by the Federal Reserve's warning of a slower economic recovery.
Later today, the U.S. Labor Department will release May import price index (+0.7% on month expected). The University of Michigan will publish its Consumer Sentiment Index for June (75.0 expected).
European indices are posting a rebound after a gap-down opening. The European Commission has posted April industrial production at -17.1% (vs -20.0% on month expected). France's INSEE has released final readings of May CPI at +0.4% (vs +0.2% on year expected). The U.K. Office for National Statistics has reported April GDP at 20.4% (vs -18.7% on month expected), industrial production at -20.3% (-15.0% on month expected) and manufacturing production -24.3% (vs -15.6% on month expected).
Asian indices closed in the red except the Chinese CSI. New Zealand's Business NZ Manufacturing PMI bounced to 39.7 in May from 25.9 in April.
WTI Crude Oil Futures are rebounding after they posted a huge drop yesterday. A slight recovery in demand for risky assets could be contributing to the technical bounce.
Gold continues to gain ground on falling equities. Gold rose 8.65 dollars (+0.5%) to 1736.36 dollars.
Risk currencies try to recover after a drop yesterday. EUR/USD rose 17pips to 1.1316 while GBP/USD gained 33pips to 1.2635.
US Equity Snapshot
Adobe Systems (ADBE), a developer of software products, reported second quarter adjusted EPS of 2.45 dollars, beating estimates, up from 1.83 dollar a year ago, on sales of 3.1 billion dollars, just shy of the consensus, up from 2.7 billion dollars in the previous year. The company expects third quarter sales of 3.15 billion dollars and adjusted EPS of 2.40 dollars. Adobe withdraws its full year guidance.
Tesla Motors (TSLA), the electric-vehicle maker, was downgraded to "neutral" from "buy" at Goldman Sachs, and to "underweight" from "equal-weight" at Morgan Stanley.
General Motors (GM), the carmaker, was upgraded to "buy" from "neutral" at Goldman Sachs.
PVH (PVH), a designer and global marketer of branded apparel, disclosed first quarter adjusted LPS of 3.03 dollars, worse than expected, vs an EPS of 2.46 dollars a year ago, on sale of 1.3 billion dollars, as expected, down from 2.4 billion dollars in the same period of last year.
Lululemon Athletica (LULU), a designer of athletic accessories and apparel, revealed first quarter EPS of 0.22 dollar, below forecasts, down from 0.74 dollar a year ago, on revenue of 652.0 million dollars, missing consensus, down from 782.3 million dollars a year earlier.
Source : TradingVIEW, Gain Capital
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.