US OPEN: Wall Street opens lower as bond yield rally continues

• The 10-year Treasury yield hit a fresh 1-year high of 1.41%
• Lowe's (LOW.US) quarterly earnings  beats estimates

US indices launched today's session lower despite dovish comments from Federal Reserve Chair Jerome Powell, who on Tuesday pushed back on suggestions that loose monetary policy risked unleashing inflation. During his semiannual testimony to Congress, Fed Chair Powell reinforced the Fed is committed to current policy stance as the economic recovery remains uneven while inflation is seen rising above 2% for some time. Today 10-year Treasury yields jumped to a fresh 1-year high of 1.41% adding pressure on growth stocks which value depends on future earnings, which are discounted more deeply when bond returns move higher. Meanwhile, the House will vote on Friday on legislation to provide the $1.9 trillion aid package.

US500 bounced off the upper limit of the descending channel which coincides with 50 SMA ( green line) and local resistance at 3895 pts and is approaching lower limit of the formation which is additionally strengthened by 200 SMA (red line) and support at 3850 pts. Should a break below occur, downward move towards 3819 pts may accelerate. Source: xStation5

Lowe’s (LOW.US) stock rose more than 2% in premarket after the home improvement retailer posted quarterly earnings of $1.33 per share, 12 cents a share above estimates. Revenue also beat market expectations. Same-store sales surged 28.1%, while Wall Street expected a 22% increase. 

Lowe’s (LOW.US) - yesterday stock was trading under pressure however buyers managed to push the price above the lower limit of the ascending channel. However today, stock launched the session lower. If the current sentiment prevails then another downward impulse towards support at $ 155.99 could be launched. Source: xStation5

Six Flags (SIX.US) posted quarterly loss of $1 per share, while analysts' expected loss of 89 cents a share loss. However revenue came in above market projections. The theme park operator will focus on opening all its parks for the 2021 season, and it expects meaningful profit growth once the operating environment becomes more normal.

Tesla (TSLA.US)  rose 2.5% in  premarket trading, indicating that investors are buying the dip following a four-day drop that erased the electric-car maker’s year-to-date gains.

Bausch Health (BHC.US) announced an agreement with investor Carl Icahn, adding Icahn Capital’s Brett Icahn and Steven Miller to the board of directors. Icahn owns 7.83% of Bausch Health.

Square (SQ.US) reported quarterly earnings of 32 cents per share while analysts expected earnings of 24 cents a share. Revenue also beat market estimates. However the company's stock fell 2.5% in premarket as growth rates appear to be slowing. The digital payments company also announced it had purchased $170 million in bitcoin during the quarter.