US OPEN: Stocks open higher as US Treasury yields fall

• US markets open higher on Tuesday

• Tech stocks making a comeback as inflation fears ease

• Amazon could announce MGM acquisition

US equity markets opened higher on Tuesday with technology companies being top gainers again. Based on US Treasury yields, inflation expectations are falling, which fuels tech stocks recovery. US 10-year yield fell below 1.60% today. Other major US stock indices are on the rise as well, the Dow (US30) is set to extend its winning streak to four sessions. The S&P 500 (US500) returned above 4,200 pts mark. Meanwhile, the US dollar continues to trade lower against the euro - the main currency pair climbed to 1.2265 today. US100 jumped towards 13,700 pts ahead of today’s US cash session. Tech stocks have surged in recent days as Treasury yields declined. The area near 13,700 pts may be considered a crucial resistance now. The index have stalled here and and a brief hesitation might be noticed. Should an upward impulse continue, traders might want to look at the blue line on the chart above (H4 interval) as it once served as an upward trendline (it could potentially be short-term resistance). On the other hand, the area near 13,420 pts can be considered an important support in case of a pullback. Source: xStation5

Company News

Amazon (AMZN.US) is reportedly close to a deal to acquire MGM Studios for almost $9 billion including debt. According to people familiar with the matter, an agreement could be announced as early as this week. Bloomberg says that the deal could be announced Tuesday. MGM has an extensive library of titles, including James Bond franchise. This could be Amazon’s biggest acquisition since acquiring Whole Foods in 2017 for $13.7 billion. 

Moderna (MRNA.US) said that its Covid-19 vaccine was 100% effective in a study of adolescents ages 12 to 17. The company plans to ask the Food and Drug Administration to expand the emergency use of its coronavirus vaccine for teens early next month. Moderna stock gained more than 2% in pre-market trading following the announcement.

Shake Shack (SHAK.US), a restaurant chain, rallied over 5% in pre-market trading after Goldman Sachs upgraded it to “buy” from “neutral”. GS analysts highlighted company’s strong balance sheet and favorable long-term growth prospects. Therefore, Goldman Sachs believes that a recent pullback might present a buying opportunity. Apart from that, Wedbush analysts upgraded the stock to “outperform” from “neutral”, presenting similar view. 

Shake Shack (SHAK.US) share price fell off the cliff in recent days, plunging towards pre-pandemic highs near $77. The stock tries to recover after two upgrades (from Goldman Sachs and Wedbush). The area near $105 could be an important milestone as it marks levels seen before huge bearish gap took place. Source: xStation5

AutoZone (AZO.US) reported quarterly profit of $26.48, thus beating the consensus estimate of $20.14 a share. The auto parts retailer’s comparable-store sales soared 28.9% against FactSet consensus estimate of 17.1%.