US OPEN: Macro readings and strong Europe boosted bulls on Wall Street

• Wall Street opens todays trading session higher 
• Better sentiment is boosted by readings of falling inflation in Europe and a rise in indexes from the Old Continent
• GDP data and higher-than-expected jobless claims extended bullish momentum
• Shares of Alphabet (GOOGL.US) and Meta Platforms (META.US) are losing at the open
• Ford Motor (F.US) struck a deal to build a $4.5 billion nickel processing plant for EVs

Rising bank stocks indicated that fears of a U.S. banking crisis have abated although the tone of Janet Yellen's speech today can be considered mixed. The U.S. Treasury Secretary indicated that "it is important to re-examine whether regulatory regimes are adequate for the risks banks face today, and to address them if necessary." On the one hand, this implies that regulators want to provide needed assistance. On the other, it indicates that the arm of the banking crisis may be prolonged. The S&P500 gains 0.7%, the Nasdaq adds 0.93% and the Dow index rises 0.36%.

Macro data positively surprised Wall Street today, bolstering the chances of a pivot. U.S. GDP was revised downward, and consumer spending also fell. Core PCE inflation was revised slightly upward, to 4.4% from 4.3%. An increase in benefit claims to 198k (expected 195k, 191k previosly) indicates that the labor market may be gradually 'disinflationary' weakening, according to the Fed's projection. Better sentiment overseas was helped by gains in European indices, which gained on the back of, among other things, another reading of lower inflation and surprisingly strong results from Swedish retail giant H&M.

Stocks from the S&P500 index categorized by industry and sector. Volume reflects shares in the index. The U.S. financial sector gained in the opening reaction. Source: xStation5

Following yesterday's comments by Powell, who was said to indicate that the Fed is prepared to make one more 25bp rate hike, expectations for a 25bp hike in May have risen. The market is pricing the chances at more than 55%. Source: CME GroupUS30 extends gains and holds above the SMA200 (red line) signaling bullish momentum. The next noteworthy resistance for the bulls could be at the 23.6 Fibonacci elimination of the upward wave started in the fall of 2022, at 33,500 points. Source: xStation5

Companies news:

Ford (F.US) shares gain. The company has signed a $4.5 billion deal in which it will jointly build a factory for materials for electric cars with Indonesia's Vale and Chinese giant Zheijang Huayou Cobalt. The factory will focus on nickel processing.

Ford Motor (F.US) shares reacted with a rise to the zone near $11, which has historically provided important support several times. Bulls are currently struggling to overcome the SMA200 (red line), which could open the way to $13.5 - the level set by previous price reactions. Source: xStation5

Alphabet (GOOGL.US) shares are falling. The technology gignat accused Microsoft (MSFT.US) of anti-competitive practices in cloud computing. The company also criticized the company's arrangements with its European suppliers. 

Meta Platforms (META.US) shares are losing ground. The Financial Times reports it is considering banning political ads in Europe over concerns that its main social media platforms Facebook and Instagram will not be able to meet upcoming EU regulations targeting online campaigns.

Alibaba (BABA.US) shares gain. The company will consider handing over control of some divisions of its business, as part of an ongoing restructuring. The stock is trying to erase declines caused by regulations, which have wiped out more than 70% of the company's valuation.

Exxon Mobil (XOM.US) shares are rebounding. The oil company's gains are fueled by rising oil prices. The price of a barrel rose after a surprise drop in U.S. inventories and a halt in exports from the Kurdistan region. This fact offset a smaller-than-expected reduction in Russian crude supplies.

Electronic Arts (EA.US) shares. The gaming giant known for titles such as 'FIFA' and 'The Sims' will lay off about 6% of its workforce and plans to reduce its office space. Among other things, the company wants to use the saved funds for higher employee salaries. This is the first case of major layoffs in the gaming industry.