US Futures still red, watch BA, DD, ACN, KBH
Jean-Christophe Rolland June 25, 2020 7:42 AM
The S&P 500 Futures remain weak on economic fears
The S&P 500 Futures remain weak after U.S. stocks lost over 2% on Wednesday as investors' confidence in the economic recovery was shaken by resurging coronavirus cases. The U.S. recorded a one-day total of more than 36,000 new cases, the highest level since late April. California, Florida and Oklahoma reported record highs in new cases. Also, the International Monetary Fund downgraded its global economic outlook, projecting a contraction of 4.9% this year, compared with a decline of 3.0% previously estimated in April.
Later today, the U.S. Commerce Department will report final readings of 1Q annualized GDP (-5.0% on quarter expected), May durable goods orders, wholesale inventories and advance goods trade balance. The Labor Department will post initial jobless claims in the week ended June 20 (1.3 million expected).
European indices are recovering. On the statistical front, Germany's GfK Consumer Confidence Index for July rose from -18.6 to -9.6 (-12.0 expected).
Asian indices ended sharply lower. The Japanese Nikkei lost 1.22% lower and the Australian ASX 200 dropped by 2.48% while the Mainland China and Hong Kong markets were closed
WTI Crude Oil Futures was little changed during Asian session. The U.S. Energy Information Administration (EIA) reported that U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) increased by 1.4M barrels from the previous week to 540.7M barrels for week ended June 19. Besides, U.S. crude oil production rebounded to 11M b/d last week from 10.5M b/d in the prior period.
Gold remains firm after nearly hitting a 8-year high on rising global COVID-19 cases.
Gold rose 1.38 dollars (+0.08%) to 1762.56 dollars.
The US dollar edges higher on increasing fears regarding economic growth.
The dollar index gained 0.25pt to 97.397.
US Equity Snapshot
Boeing (BA), the aircraft maker, was downgraded to "sell" from "hold" at Berenberg.
DuPont (DD), a diversified specialty chemicals company, maintains quarterly dividend of 0.30 dollar per share. Separately, the stock was upgraded to "outperform" from "sector perform" at RBC Capital.
Accenture (ACN), a leading global professional services company, expects full year sales growth to be 3.5% to 4.5% vs a previous forecast of 3%-6%. Full year EPS is seen at 7.57-7.70 dollars vs a previous estimate of 7.48-7.70 dollars. Separately, the company posted third quarter EPS down to 1.90 dollar from 1.93 dollar a year earlier, on sales down 1% to 11 billion dollars.
KB Home (KBH), the homebuilder, plunged after hours after posting second quarter net orders down 57%. Sales were down to 914 million dollars, lower than expected, from 1.02 billion dollars a year earlier.
Source : TradingVIEW, Gain Capital
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.