Market News & Analysis
US Futures continue to fall, watch BRK/B, TSN, QCOM, HON
Jean-Christophe Rolland May 4, 2020 9:56 PM
Later today, U.S. official data on March Factory Orders (-9.2% on month expected) and Durable Goods Orders (final reading, -14.4% on month expected) will be reported.
European indices are on the downside. Research firm Markit has published final readings of April Manufacturing PMI for the eurozone at 33.4 (vs 33.6 expected), for Germany at 34.5 (vs 34.4 expected) and for France at 31.5 (as expected). The eurozone Sentix Investor Confidence Index for May was released at -41.8 (vs -28.0 expected).
Asian indices closed in the deep red except the Australian ASX. The Chinese and Japan markets were closed today.
WTI Crude Oil Futures are under pressure. The number of U.S. oil rigs counts dropped further to 325 on May 1 from 378 a week ago.
Gold gained 6.55 dollars (+0.39%) to 1706.97 dollars per ounce on renewed US-China tensions.
For the same reason, the US dollar is surging, EUR/USD fell 45pips to 1.0936 while GBP/USD declined 73pips to 1.2433.
US Equity Snapshot
Berkshire Hathaway (BRKA), a holding company with a vast range of subsidiaries, swung to a net loss of 49.7 billion dollars in the first quarter from a net profit of 21.7 billion dollars in the prior-year period. Operating profit grew 6% to 5.87 billion dollars. The company's CEO and Chairman Warren Buffett said it has sold its entire stakes in the four major U.S. airlines - Delta Air Lines (DAL), Southwest Airlines (LUV), American Airlines (AAL), and United Airlines (UAL) - at a loss.
Tyson Foods (TSN), the largest US producer of processed chicken and beef, unveiled second quarter adjusted EPS down to 0.77 dollar from 1.20 dollar a year earlier, on sales up to 10.89 billion dollars from 10.44 billion dollars a year ago. The company said that "the lower levels of productivity and higher costs of production we have experienced will likely continue in the short term until the effects of COVID-19 diminish."
QUALCOMM (QCOM), a maker of digital wireless communications equipment, was rated "underweight" in a new coverage at Wells Fargo.
Honeywell (HON), the industrial conglomerate, was downgraded to "hold" from "buy" at Deutsche Bank.
Source : TradingVIEW, Gain Capital
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