FXStreet notes that S&P 500 is up 19% from 19 March. The rally has undoubtedly been helped by a flattening out of the curve of new corona cases globally and previously unheard-of measures from authorities to ease the default risk burden further, per Nordea.
“Profit estimates have, not surprisingly, continued to get downgraded and S&P 500 is now expected to have -12% EPS growth in 2020 according to Bloomberg. The downgrade process is far from over, in our view.”
“Macro indicators point to a risk of a 30 to 60% drop in earnings for 2020.”
“The current S&P 500 forward P/E of 19.5 is in all likelihood a major understatement of the actual P/E ratio. The equity market is far from recessionary cheap.”
U.S. stock-index futures rose on Friday after the U.S. President Donald Trump laid out plans to reopen the country's economy and media reported that Gilead Sciences' drug showed some effectiveness in treating the coronavirus.
Global Stocks:
| Index/commodity | Last | Today's Change, points | Today's Change, % |
| Nikkei | 19,897.26 | +607.06 | +3.15% |
| Hang Seng | 24,380.00 | +373.55 | +1.56% |
| Shanghai | 2,838.49 | +18.56 | +0.66% |
| S&P/ASX | 5,487.50 | +71.20 | +1.31% |
| FTSE | 5,802.32 | +173.89 | +3.09% |
| CAC | 4,519.86 | +169.70 | +3.90% |
| DAX | 10,659.87 | +358.33 | +3.48% |
| Crude oil | $17.89 | | -9.96% |
| Gold | $1,719.40 | | -0.71% |
(company / ticker / price / change ($/%) / volume)
| 3M Co | MMM | 147.4 | 2.50(1.73%) | 8435 |
| ALCOA INC. | AA | 7.25 | 0.29(4.17%) | 70364 |
| ALTRIA GROUP INC. | MO | 41.39 | 0.99(2.45%) | 11267 |
| Amazon.com Inc., NASDAQ | AMZN | 2,372.70 | -35.49(-1.47%) | 134997 |
| American Express Co | AXP | 86.2 | 4.85(5.96%) | 35500 |
| AMERICAN INTERNATIONAL GROUP | AIG | 24.5 | 1.32(5.69%) | 6941 |
| Apple Inc. | AAPL | 285.75 | -0.94(-0.33%) | 1378039 |
| AT&T Inc | T | 31.03 | 0.87(2.88%) | 185847 |
| Boeing Co | BA | 149.1 | 14.86(11.07%) | 1192674 |
| Caterpillar Inc | CAT | 114.8 | 2.61(2.33%) | 20470 |
| Chevron Corp | CVX | 81.84 | 1.85(2.31%) | 84666 |
| Cisco Systems Inc | CSCO | 42.4 | 0.90(2.17%) | 108724 |
| Citigroup Inc., NYSE | C | 43.2 | 2.68(6.61%) | 304310 |
| E. I. du Pont de Nemours and Co | DD | 37.99 | 1.77(4.89%) | 1880 |
| Exxon Mobil Corp | XOM | 39.85 | 0.70(1.79%) | 274749 |
| Facebook, Inc. | FB | 179.8 | 3.55(2.01%) | 158335 |
| FedEx Corporation, NYSE | FDX | 121.2 | 2.12(1.78%) | 17751 |
| Ford Motor Co. | F | 5.15 | 0.21(4.25%) | 810700 |
| Freeport-McMoRan Copper & Gold Inc., NYSE | FCX | 7.97 | 0.39(5.15%) | 113904 |
| General Electric Co | GE | 6.66 | 0.42(6.73%) | 2063151 |
| General Motors Company, NYSE | GM | 22.1 | 1.23(5.89%) | 45103 |
| Goldman Sachs | GS | 184 | 6.96(3.93%) | 37664 |
| Google Inc. | GOOG | 1,288.00 | 24.53(1.94%) | 14086 |
| Hewlett-Packard Co. | HPQ | 15.59 | 0.35(2.30%) | 11546 |
| Home Depot Inc | HD | 210 | 10.15(5.08%) | 26264 |
| HONEYWELL INTERNATIONAL INC. | HON | 137.62 | 5.29(4.00%) | 1198 |
| Intel Corp | INTC | 62.5 | 1.71(2.81%) | 101194 |
| International Business Machines Co... | IBM | 119 | 3.27(2.83%) | 15793 |
| International Paper Company | IP | 31.5 | 1.03(3.38%) | 2161 |
| Johnson & Johnson | JNJ | 152 | 2.33(1.56%) | 27437 |
| JPMorgan Chase and Co | JPM | 92.6 | 5.27(6.03%) | 399334 |
| McDonald's Corp | MCD | 185.99 | 6.49(3.62%) | 16279 |
| Merck & Co Inc | MRK | 84.02 | 1.02(1.23%) | 13604 |
| Microsoft Corp | MSFT | 180.2 | 3.16(1.78%) | 475826 |
| Nike | NKE | 89 | 2.70(3.13%) | 183611 |
| Pfizer Inc | PFE | 36.53 | 0.65(1.81%) | 34131 |
| Procter & Gamble Co | PG | 121.8 | 0.30(0.25%) | 315215 |
| Starbucks Corporation, NASDAQ | SBUX | 77.3 | 3.79(5.16%) | 59640 |
| Tesla Motors, Inc., NASDAQ | TSLA | 770 | 24.79(3.33%) | 360448 |
| The Coca-Cola Co | KO | 48.25 | 1.15(2.44%) | 35395 |
| Travelers Companies Inc | TRV | 104.88 | 5.07(5.08%) | 5093 |
| Twitter, Inc., NYSE | TWTR | 27.2 | 0.65(2.45%) | 132023 |
| UnitedHealth Group Inc | UNH | 305 | 6.57(2.20%) | 7207 |
| Verizon Communications Inc | VZ | 57.93 | 0.27(0.46%) | 42174 |
| Visa | V | 170.6 | 8.18(5.04%) | 130737 |
| Wal-Mart Stores Inc | WMT | 130.8 | -1.53(-1.16%) | 37667 |
| Walt Disney Co | DIS | 108.25 | 6.23(6.11%) | 244792 |
| Yandex N.V., NASDAQ | YNDX | 35.86 | 0.89(2.55%) | 21987 |
Netflix (NFLX) target raised to $500 from $450 at BMO Capital Markets
Apple (AAPL) downgraded to Sell from Neutral at Goldman; target lowered to $233
FedEx (FDX) downgraded to Equal Weight from Overweight at Barclays; target $135
Procter & Gamble (PG) reported Q3 FY 2020 earnings of $1.17 per share (versus $1.06 per share in Q3 FY 2019), beating analysts' consensus estimate of $1.13 per share.
The company's quarterly revenues amounted to $17.214 bln (+4.6% y/y), generally in line with analysts' consensus estimate of $17.293 bln.
The company also lowered guidance for FY 2020, projecting revenues of +3-4% y/y to $69.8-70.4 bln versus analysts' consensus estimate of $70.42 bln. That was down from prior guidance of +4-5% y/y.
PG rose to $123.15 (+1.36%) in pre-market trading.
| Index | Change, points | Closed | Change, % |
|---|---|---|---|
| NIKKEI 225 | -259.89 | 19290.2 | -1.33 |
| Hang Seng | -138.89 | 24006.45 | -0.58 |
| KOSPI | -0.01 | 1857.07 | -0 |
| ASX 200 | -50.4 | 5416.3 | -0.92 |
| FTSE 100 | 30.78 | 5628.43 | 0.55 |
| DAX | 21.78 | 10301.54 | 0.21 |
| CAC 40 | -3.56 | 4350.16 | -0.08 |
| Dow Jones | 33.33 | 23537.68 | 0.14 |
| S&P 500 | 16.19 | 2799.55 | 0.58 |
| NASDAQ Composite | 139.18 | 8532.36 | 1.66 |
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