Market News & Analysis
US Futures rising, watch IBM, BABA, HPE, NVDA, DE, INTU
Jean-Christophe Rolland May 22, 2020 1:30 PM
European indices are rebounding, after opening on the downside as China wants to impose new national security legislation on Hong Kong, threatening its status as a global financial center. The U.K. Office for National Statistics has reported April retail sales at -18.1% (vs -15.5% on month expected).
Asian indices closed in the red. This morning, the Bank of Japan announced plans to start a new 75 trillion yen lending program in June, to support coronavirus-hit businesses, while keeping its benchmark rate at -0.1% and 10-year government bond yield target at about 0% unchanged. Also, official data showed that Japan's core CPI dipped 0.2% on year in April (-0.1% expected), the first decline in more than three years.
WTI Crude Oil Futures are on the downside. IHS Markit projected that U.S. Crude Oil production would drop 1.75M b/d.
Gold rose 8.06$ (+0.47%) to 1735.06, rebounding on geopolitical tensions while the US dollar remains firm. EUR/USD fell 47pips to 1.0903 and GBP/USD declined 38pips to 1.2185.
US Equity Snapshot
IBM (IBM), the tech company, announced job cuts, likely in the thousands according to different reports.
Alibaba (BABA), the e-commerce chines company, posted fourth quarter sales up 22% to 114.3 billion yuan (16 billion dollars), above estimates. Adjusted EPS also topped forecasts.
Hewlett Packard Enterprise (HPE), a supplier of information technology products and services, reported second quarter adjusted EPS of 0.22 dollar, below consensus, down from 0.42 dollar a year ago, on net sales of 6.0 billion dollars, less than forecast, down from 7.2 billion dollars in the previous year.
Nvidia (NVDA), a leading designer of graphics processors, posted first quarter adjusted EPS up to 1.80 dollar from 0.88 dollar a year earlier, on sales up to 3.08 billion dollars from 2.22 billion dollars a year ago. Both figures beat estimates. The company expects second quarter sales of 3.65 billion dollars, plus or minus 2%, in-line with forecasts.
Deere & Co (DE), a manufacturer of agricultural and construction equipment, unveiled second quarter EPS down to 2.11 dollars from 3.52 dollars a year earlier, on sales down 20% to 8.22 billion dollars. Both figures beat estimates. The company expects full year net income between 1.6 and 2 billion dollars, slightly below consensus.
Intuit (INTU), a developer and marketer of accounting software for small and medium sized businesses, announced third quarter adjusted EPS of 4.49 dollars, missing estimates, down from 5.55 dollars a year ago, on sales of 3.0 billion dollars, as expected, down from 3.3 billion dollars in the year before.
Source : TradingVIEW, Gain Capital
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