US Open: Wall Street opens higher. US100 surges 1,1% 📈

• Wall Street opens higher, US500 gains nearly 1%, dollar loses
• Small increase in jobless claims, third revision of US GDP in line with expectations
• Fed's Goolsbee positive on chances of soft landing of US economy
• Peloton (PTON.US) reduces euphoric gains after business deal with Lululemon (LULU.US)
• Micron (MU.US) disappoints with Q2 report UBS issues positive recommendation
• Palantir (PLTR.US) rises 6% after new 250 mln USD AI software deal with US defense agencies

Today, the US stock market is seeing gains after several weak sessions. The Nasdaq 100 (US100) is gaining about 1% against a 0.3% rally in the DJIA (US30) and 0.5% gains in the S&P 500 (US500). Macro data released today showed that demand and inflation in the U.S. economy is actually slowing, although the labor market remains strong. The data seem positive for markets on the side of expectations for a November Fed decision. At the same time, however, they put a question mark over the earnings season, which will begin as early as October.

• US GDP for Q2 (final, third reading): 2.1% - in line with the forecast and the earlier reading
• US GDP deflator: 1.7% (expected: 2.0%; previous: 4.1%)
• Private consumption: 0.8% (expected: 1.7%; previous: 4.2%)
• US jobless claims: 204,000 (expected: 215,000; previous: 201,000).
• Corporate profits: -4.1% y/y (expected: 1.6% q/q; previous: -5.9% q/q)

Definitely lower consumption, falling inflation and still very strong labor market. This is important data for the market and the Fed. Comments by Austan Goolsbee, Chicago Fed chief indicated that he is not convinced that another rate hike will be necessary. He also conveyed that the Federal Reserve has a chance to do a historic job and lower inflation without triggering a recession but only a short period of below-trend growth.

U.S. companies categorized by sector and industry. Source: xStation5US500 is currently trading at 4347 points and bouncing off the trend line. At the same time, however, the contracts are still trading below the 23.6 Fibonacci retracement of the 2022 upward wave, and the key moving averages on the H4 interval have rolled downward signaling strong supply. The key resistance for the bulls appears to be the 4400 point level, which could indicate that the drop below the 23.6 Fibo was only temporary. Source: xStation5

News from companies:

• Accenture (ACN.US) shares are losing more than 5%, the IT services company reported mixed fourth quarter results
• and provided lower-than-expected forecasts.
• CarMax (KMX.US) falls 12% after reporting lower-than-expected EPS for the second quarter
• Gritstone (GRTS.US) gains 26% after the biotechnology company reported that it will receive as much as $433 million from the U.S. government to conduct research on the next-generation Covid-19 vaccine.
• Peloton Interactive (PTON.US) reduces gains from nearly 30 to 5% after announcing a five-year partnership with Lululemon (LULU.US)
• Spotify Technology (SPOT.US) shares lose as Monness, Crespi, Hardt & Co. downgrades to neutral from previous 'buy' recommendation
• Chip maker Micron (MU.US) reported results that beat expectations in terms of EPS and revenue but strongly disappointed with a decline in free cash flow. Also, forecasts indicated that the company expects a slowdown

Looking at Micron (MU.US) shares, the company is losing nearly 2.7% today, but a positive recommendation from UBS issued after sharp declines at the opening of the US market brought the bulls back to the company's shares and the trend line was maintained. According to analysts, Micron's chip sector is signaling improvement, after oversupply from the 2020-2021 period impacted stocks and margins declined. Source: xStaiton5