US OPEN: Wall Street pulls back after higher-than-expected CPI print

• Wall Street indices drop following higher-than-expected US CPI print

• US100 drops over 1%

• Palantir and Cadence Design rally after earnings

Wall Street indices launched today's cash session lower. Indices began to move lower following a higher-than-expected US CPI inflation reading for January. While headline and core US inflation decelerated in January, the pace of the slowdown was smaller than expected. Headline CPI decelerated from 6.5 to 6.4% YoY (exp. 6.2% YoY) while core CPI decelerated from 5.7 to 5.6% (exp. 5.5% YoY). Hawkish bets were in play following the release and now interest rate markets no longer price in a 25 bp FOMC rate cut this year. 

Nasdaq-100 (US100) experienced some wild moves following the US CPI report for January but is ultimately trading lower. Price failed to break above the 50-period moving average on H4 interval (green line) as well as the upper limit of the short-term downward channel. A move back towards the lower limit of the channel cannot be ruled out, especially if Fed speakers hit the hawkish note in the afternoon. A near-term zone to watch can be found ranging below the 12,150 pts handle. Source: xStation5

Palantir Technologies (PLTR.US) rallies over 10% after Q4 2022 results. Company reported revenue at $508.6 million (exp. $505.1 million), marking a 18% YoY increase. Company managed to report a $0.01 profit per share, up from a $0.08 loss per share in Q4 2021. Adjusted EBITDA reached $121.6 million (exp. $86.4 million) while adjusted operating profit dropped 7.9% YoY to $114.3 million. This was the first quarter of positive net income for the company (GAAP methodology) and Palantir expects to turn first annual profit in 2023, forecast $481-531 million in adjusted operating profit this year.

Palantir (PLTR.US) trades over 10% higher today. Q4 profit as well as guidance for the first annual profit in 2023 is supporting share price today. Stock launched today's trading above 200-session moving average (purple line) but bears took over and retested the aforementioned moving average. The first attempt at breaking back below it turned out to be a failure. Source: xStation5

Cadence Design (CDNS.US) launched today's trading higher, thanks to a better-than-expected earnings report for Q4 2022. Company reported adjusted EPS at $0.96 (exp. $0.92). Revenue climbed 16% YoY to $899.9 million (exp. $885.3 million). Product & maintenance revenue increased 16% YoY, to $845.2 million (exp. $830.2 million), while services revenue increased 1.5% YoY, to $54.0 million (exp. $53.5 million). Adjusted net income reached $261.8 million (exp. $253.6 million). Company expects 2023 adjusted EPS to reach $4.90-5.00 (exp. $4.67) and revenue to reach $4.00-4.06 billion (exp. $3.88 billion).

Cadence Design (CDNS.US) is trading over 5% higher today, following the release of Q4 2022 earnings report. Better-than-expected results push the stock above $190.50 resistance zone and to fresh all-time highs! However, big part of this gain has been already erased. Source: xStation5