FOREX Oil

US Futures Eonsolidating, Watch AMZN, SCHW, COST, TIF

The S&P 500 Futures are facing a slight consolidation after they extended their winning streak to a fourth session yesterday. Investors were encouraged by better-than-expected private jobs data and signs of abating social unrest.

On the statistic front, Initial Jobless Claims for the week ended May 30 were 1.877 million vs 1.833 million expected. Trade balance deficit was 49.4 billion dollars in April, as anticipated.

European indices are consolidating. The ECB kept its main refinancing rate unchanged at 0.000%, as expected. The envelope for the pandemic emergency purchase program (PEPP) will be increased by 600 billion euros to a total of 1,350 billion euros. The horizon for net purchases under the PEPP will be extended to at least the end of June 2021. Research firm Markit has published U.K. Construction PMI for May was released at 28.9 (vs 29.4 expected). The European Commission has posted April retail sales at -11.7% (vs -15.0% on month expected).

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Asian indices closed in the green except the Chinese CSI. The U.S. government said it will block Chinese airlines from flying into the country in response to China’s decision to ban U.S. air carriers. This morning, official data showed that Australia’s retail sales dropped 17.7% on month in April (-17.9% expected), while trade surplus totaled 8.8 billion Australian dollars (7.5 billion Australian dollars expected).

WTI Crude Oil Futures are under pressure despite reports that Saudi Arabia and Russia have agreed to extend an output cut deal through July.

Gold rebounded after its biggest daily decline in a month. The euro bounced after the ECB raised its PEEP size more than expected. 

Gold rose 7.09 dollars (+0.42%) to 1706.76 dollars. The EUR/USD gained 9pips to 1.1242.

US Equity Snapshot

Amazon.com (AMZN), the e-commerce giant, might be in talks to buy a two billion dollars stake in Indian telecom company Bharti Airtel, according to Reuters.

Charles Schwab (SCHW), the investment brokerage group, may have received DOJ approval for TD Ameritrade deal, according to CNBC.

Costco Wholesale (COST), an operator of a chain of warehouse stores, reported May net sales up 7.5% to 12.55 billion dollars.

Tiffany (TIF): “the Board of Directors of LVMH notably focused its attention on the development of the pandemic and its potential impact on the results and perspectives of Tiffany & Co with respect to the agreement that links the two groups. Considering the recent market rumors, LVMH confirms that it is not considering buying Tiffany shares on the market.”

Goldman Sachs (GS) was downgraded to “hold” from “buy” at Deutsche Bank while Wells Fargo (WFC) was upgraded to “buy” from “hold” at the same research firm.

JM Smucker (SJM), a packaged food company, released fourth quarter adjusted EPS up to 2.57 dollars from 2.08 dollars a year earlier, on sales up to 2.09 billion dollars from 1.90 billion dollars a year ago. Both figures beat estimates. The company expects 2021 adjusted EPS of 7.90-8.30 dollars, below forecasts.

Ciena (CIEN), the networking systems, services and software company, unveiled second quarter adjusted EPS up to 0.76 dollar from 0.48 dollar a year earlier, on sales up 3.4% to 894.1 million dollars. Both figures beat estimates.

Navistar International (NAV), the trucks and buses maker, posted second quarter LPS of 0.38 dollar, slightly beating consensus, vs a LPS of 0.48 dollar a year earlier, on sales down 36% to 1.93 billion dollars, above consensus.

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