Technical Resistance in Doubt
April 29, 2020
Today and tomorrow is the peak 48 hour period for CQ1 earnings season in the US and Europe. Notwithstanding the rally-to-date, the last 24 hours have been encouraging. Overnight results from GOOGL covered the sharp decline in core search advertising revenues during March, but management said their now seeing signs of stabilization in that number. YUM China (YUMC) said they continue to see same store sales improve in China. SBUX said same store sales in China should be back to pre-crisis levels by the end of September and plan to open 90% of US stores by end of June. And maybe most significant from a psychological perspective was Southwest Airlines (LUV) follow-on offering they were able to upsize from 55M shares to 70M based on demand. In Europe, Daimler and Volkswagen offer glimmers of hope during respective calls, Barclays Q1 came in better than feared (recall DB better on Sunday eve) and AMS AG semiconductor announced strong results and guidance.