US OPEN: Russell 2000 leads Wall Street indices

• Wall Street mixed at start of session, Russell 2000 gains strongly

• Brainard expects a return to inflation target by election time

• Fed's successful stress test fuels US banks

• Micron negates gains after release of better results

The start of today's cash session on Wall Street is performing mixed. The US100 index loses close to 0.3% at the start of trading, with the Russell 2000 (US2000) the only benchmark trading higher, gaining 0.8%. The mood on Wall Street today was primarily created by a set of better-than-expected macro data. The Fed's Brainard said that inflation will continue to decline in the second part of the year and that the level of growth in the prices of goods and services will be around the 2% target by the election. 

US equities categorised by sector and industry. Size represents market capitalisation. Source: xStation5

The S&P 500 Index (US500) at the start of today's cash session is not showing excessive deviation in either direction. Quotes remain in the 4420 point zone.  Source: xStation 5

Core News:

Highlights from the companies reporting at the start of the New York session. Source: Bloomberg

US bank stocks gain ahead of the opening of today's cash session after the Federal Reserve's stress test showed that lenders have adequate capital to weather an economic slump. 

Source: XTB

Powell comments that most Fed bankers see two more interest rate hikes in the US. This sentiment is particularly evident in the market today, as the overtone of the appropriateness of further hikes was supported today by an unexpectedly higher US GDP reading and lower unemployment claims. 

Micron Technology (MU.US) beat third quarter earnings estimates on Wednesday. Results were driven by demand for the fast-growing artificial intelligence sector and easing oversupply in the traditional PC and smartphone markets.  Micron's third-quarter revenue of US$3.75 billion exceeded estimates of US$3.65 billion, while fourth-quarter revenue was approximately US$3.9 billion. The company's adjusted net loss of US$1.43 per share was below estimates of US$1.58 per share.  The company's shares had been gaining close to 2.3 per cent prior to the opening of the session, however, this magnitude of gains has now been reversed and the company is losing. 

Micron stock chart. The stock is negating the early rally. Source: xStation 5

Salesforce (CRM.US) to invest $4bn in the UK in artificial intelligence innovation.

Berkshire Hathaway (BRKB.US), the conglomerate controlled by Warren Buffett, announced on Wednesday that it has acquired more shares in Occidental Petroleum, increasing its stake in the oil company to more than 25 per cent.

BioNTech (BNTX.US), the German vaccine developer for COVID-19, and its US partner OncoC4 announced that they have started the final trial of their lung cancer immunotherapy product. The Phase III study will involve approximately 600 patients.