US OPEN: Wall Street opens higher as bond yields retreat

• US stocks opened higher
• US2000 approaches major resistance
• Chipotle Mexican Grill (CMG.US) stock surges on upbeat quarterly earnings

US indices launched today's session higher as a recent rally in Treasury yields paused. The 10-year U.S. Treasury yield retreated from levels last seen in 2019, and yields across Europe also fell after France’s central banker said markets may be getting ahead of themselves in pricing rate hikes for this year. Also a set of solid quarterly results and signs of easing tensions in Ukraine lifted market sentiment. Nasdaq continues its rebound from the recent low on Jan. 27 after falling into correction territory earlier this year. Still, many experts remain concerned about the short term outlook for tech stocks amid potential interest rates hikes and elevated market volatility. Meanwhile traders await US inflation figures for release on Thursday to guide policy outlook.

US2000 rebounded following a recent strong sell-off. Market bulls managed to take the price above local resistance at 2035 pts which is marked with 23.6% Fibonacci retracement of the last downward wave. If current sentiment prevails, upward move may accelerate towards next resistance at 2110 pts which coincides with 38.2% retracement and upper limit of the 1:1 structure. Source: xStation5

Company news:

Chipotle Mexican Grill (CMG.US) stock jumped over 6% in premarket after the restaurant chain posted an adjusted quarterly profit of $5.58 per share, well above analysts’ estimates of $5.25, while revenue matched Wall Street expectations. The burrito chain raised menu prices due to higher costs of labor and food, and said they would likely be raised again this year.

Chipotle Mexican Grill (CMG.US) stock witnessed a 33% correction in recent months, however it seems that buyers managed to halt declines around $1300.00 level. Stock launched today’s session with a bullish price gap and is heading towards major resistance at $1594.00 which is marked with 23.6% Fibonacci retracement of the upward wave launched in March 2020 and 50 SMA (red line). Source: xStation5

Omnicom (OMC.US) stock surged almost 8.0% in premarket after the advertising and PR giant recorded organic growth across all disciplines and geographies, helped by higher spending by clients.

Nikola (NKLA.US) stock fell nearly 1.5% in premarket after the company denied a report that it instituted a hiring freeze and that the electric truck maker has lost nearly its entire supply chain leadership. Nikola said its supply chain department is “intact” and it continues to hire. 

Tesla (TSLA.US) stock rose more than 1.5% in premarket despite the electric car manufacturer being forced to withdraw almost 27,000 vehicles because of a windscreen defrosting software error.

Enphase Energy (ENPH.US)  shares jumped over 20.0% in premarket after the maker of solar and battery systems posted solid quarterly figures. Company earned an adjusted 73 cents per share, beating analysts’ expectations of 58 cents per share.