US OPEN: Wall Street opens higher after inflation data

• Wall Street indices open higher after inflation data

• US headline CPI unexpectedly slows below 5% YoY

• Celsius Holdings, Twilio and Upstart Holdings with big moves after earnings

Major Wall Street indices launched today's trading higher after sentiment towards stocks was boosted by US CPI data for April. CPI report showed an unexpected drop in US headline inflation to below 5% - the lowest reading since the first half of 2021. As rate hike odds dropped following the release, equities gained on hopes that Fed won't raise rates further. However, those gains started to be erased after beginning of US cash trading.

Source: xStation5

Small-cap Russell 2000 (US2000) has been underperforming other Wall Street indices yesterday as sell-off in US regional banking shares resumed. However, the situation has calmed today and the index is 0.7% higher at press time. Taking a look at the chart at D1 interval, we can see that US2000 halted a 2-day drop at around 1,750 pts and is attempting to recover today. A test of the 50-session moving average (green line) was made earlier today but bulls failed to push the index above it. Index futures are currently trading around 1% below daily highs reached shortly after US CPI print.

Company News

Celsius Holdings (CELH.US) jumped at the start of Wall Street trading today, in response to Q1 2023 earnings release. Company reported EPS at $0.40 (exp. $0.22) and revenue at $259.94 million ($225.1 million). This was a 95% YoY jump in revenue. Net income jumped more than sixfold year-over-year and reached $34.4 million. Partnership with PepsiCo (PEP.US) which helps distribute energy drinks made by Celsius, allowed the company to become a #3 energy drinks brand in the United States.

Twilio (TWLO.US) launched today's trading lower after disappointing forecasts. Company reported Q1 adjusted EPS at $0.47 (exp. $0.21) and revenue at $1.01 billion (exp. $1.00 billion). However, Twilio said that it expects adjusted EPS in Q2 2023 to be just $0.27-0.31 while revenue should rise 4-5% YoY, to $980-990 million range. While earnings forecast was more or less in-line with expectations ($0.29), revenue forecast came short of an expected $1.05 billion.

Celsius Holdings (CELH.US) launched today's cash trading with a massive bullish price gap. Stock is trading around 13% higher on the day and has even briefly traded at record highs above $121.00 mark. Source: xStation5

Upstart Holdings (UPST.US) rallies today after the US lending platform released Q1 2023 earnings yesterday. While the company reported a $0.47 loss per share, it was a result that was much better than -$0.82 expected by analysts. Revenue at $102.93 million was 5% higher than expected but at the same time almost 67% lower than a year ago. Upstart reported 78% drop in loan origination as it originated only 84 thousand loans during the quarter, worth slightly less than $1 billion. However, company expects situation to improve going forward with revenue seen at $135 million in Q2 2023 and net loss narrowing from $38.7 million in Q1 to $7 million in Q2.

Media reports surfaced saying that EU regulators are likely to green light a merger between Microsoft (MSFT.US) and Activision Blizzard (ATVI.US) on Monday, May 15.

Upstart Holdings (UPST.US) jumped at the start of today's Wall Street session, thanks to upbeat Q2 forecasts. Stock tested $19.80 resistance zone at the beginning of cash session but failed to break above it. Gains have been trimmed since and should the situation continue, bears may attempt to push the stock back below $17.50 support. Source: xStation5