240420 US Pre OPen

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By :  ,  Financial Analyst

US Futures struggling to rebound, watch INTC, AXP, BA, GOOGL

The S&P 500 Futures are trying to recover after they pared early gains of over 1% yesterday to close mixed. Sentiment was dampened by reports that Gilead Sciences' (GILD -4.3%) experimental drug Remdesivir might not be an effective treatment for coronavirus.

Later today, March Durable Goods Orders (preliminary reading, -11.9% on month expected) and the University of Michigan's Consumer Sentiment Index (70.0 for April expected) will be reported.

European indices are on the downside as the European leaders failed to reach an agreement on the longer term economic rebuilding plan. Germany's IFO Business Climate Index for April was released at 74.3 (vs 80.0 expected). The U.K. Office for National Statistics has reported March retail sales at -5.1% (vs -4.0% on month expected).

Asian indices closed in the red except the Australian ASX. Government data showed that Japan's national CPI grew 0.4% on year in March (as expected).

WTI Crude Oil Futures continue to rebound. Kuwait said it will start to cut 23% oil production as of May 1, according to the official Kuwait News Agency citing Oil Minister Khaled Al-Fadhel.

Gold rose 3.16 dollars (+0.18%) to 1733.67 dollars per ounce, still remaining strong on economic fears. 

The US dollar is consolidating against its major peers but is still headed for its best week since early April on falling oil prices. EUR/USD rose 17pips to 1.0794 and GBP/USD gained 20pips to 1.2364.

US Equity Snapshot

Intel (INTC), a designer and manufacturer of microprocessors, lost ground after hours after saying it expects second quarter adjusted EPS to be 1.10 dollar, below estimates. The company did not provide full year guidance "given significant economic uncertainty". Separately, Intel reported first quarter adjusted EPS and sales that beat forecasts.

American Express (AXP), the integrated payments company, unveiled first quarter adjusted EPS of 1.98 dollar, better than expected. Sales were down by 0.5% to 10.31 billion dollars, missing estimates. Consolidated provisions for losses were 2.6 billion dollars, up from 809 million dollars a year ago.

Boeing (BA), an aircraft manufacturer, might announce decisions to lower 787 Dreamliner production by half and reduce its workforce when it reports first quarter results next week, reported Bloomberg.

Alphabet (GOOGL), Google's parent company, might cut marketing expenses by half for the second half of 2020, according to CNBC.

E*Trade (ETFC), an online brokerage service, disclosed first quarter EPS down to 0.72 dollar from 1.09 dollar a year ago, on sales down 6.4% to 707 million dollars. Those figures missed estimates.

Capital One Financial (COF), a diversified banking services firm, released first quarter LPS of 3.10 dollars, significantly missing estimates, down from an EPS of 2.86 dollars a year ago, on sales down 2.3% to 7.25 billion dollars, also below forecasts.

Source : TradingView, GAIN Capital

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