US OPEN: Wall Street opens higher as retail investors move to silver

• Retail traders are taking aim at silver mining stocks
• Biden invites 10 Republican Senators to discuss virus relief bill
• US500 is testing major resistance area

US indices launched the first February session higher, rebounding from their worst week in three months as the retail investors from Reddit focus on other markets such as silver, giving the tech sector and hedge funds a break. Meanwhile, President Joe Biden will meet 10 Republican senators after they posted him a letter suggesting he scales back his $1.9 trillion Covid relief proposal in order to get cross-party support. On the data front, IHS Markit US Manufacturing PMI was revised slightly higher to 59.2 in January from 59.1 in the preliminary estimate, pointing to record factory growth, due to accelerated expansions in output and new orders. On the corporate font, Alphabet, Amazon, Exxon Mobil and Pfizer will provide their quarterly figures this week.

US500 is trying to erase last week's losses. Index is currently testing resistance at 3746 pts which is additionally strengthened by 200 SMA ( red line). If buyers manage to break above it, an upward impulse towards 3785 pts could be launched. On the other hand, once sellers regain control, the support at 3700 pts may be at risk. Source: xStation5

GameStop (GME.US) and AMC Entertainment (AMC.US) still face restrictions on the Robinhood trading platform, following last week’s Reddit-inspired volatility. GameStop stock fell 5%, while AMC Entertainment shares jumped 22%. Bed Bath & Beyond Inc (BBBY.US) stock fell 7.0%.

Stocks of several silver mining companies, including Pan Am Silver (PAAS.US), Wheaton Precious Metals (WPM.US), Hecla Mining (HL.US)  jumped as the price of silver surges partially due to the attention of the Reddit community.

Pan Am Silver (PAAS.US) stock launched today’s session with a bullish price gap and is currently testing major resistance at $37.09. If the current sentiment prevails then upward move could be extended to the $40.19 handle or even $44.00 level where all-time highs are located. On the other hand, if sellers will manage to regain control, then another downward impulse towards support at $32.00 could be launched. Source: xStation5

Exxon Mobil (XOM.US) stock was up 2.1% in premarket trade , while Chevron (CVX.US) stock was up 1.7% on the news from The Wall Street Journal which reported that both companies were discussing a potential merger last year. The discussions were preliminary and have now been suspended, but people familiar with the talks told the Journal they could resume in the future.

Tesla (TSLA.US) stock jumped more than 3% after Piper Sandler raised its price target on electric vehicle maker stock to a Street high of $1,200 per share from $515 a share, saying Tesla could have new opportunities to pursue for decades due to its target industries currently embracing outdated business models. 

Moderna (MRNA.US) stock rose nearly 2% in premarket seeking  after the company announced that it is seeking Food and Drug Administration approval to increase the number of Covid vaccine doses in a vial to 15 from 10 in order to ease a manufacturing crunch, according to CNBC.

Nio (NIO.US) shares gained nearly 3% in premarket after China-based electric vehicle maker reported deliveries of 7,225 vehicles in January, an increase of 352% compared to last year.