US OPEN: Wall Street rally loses momentum

• US Stocks rally fades
• Better than expected US economic data
• Travelers (TRV.US) beats Q4 earnings forecast

US indices launched today's session slightly higher a day after the major averages hit record highs on Inauguration Day. Investors hope that further stimulus and improved vaccine rollout will ensure a smoother and faster reopening. However, historically high valuations have raised fears of a deeper correction among some market participants. Meanwhile, the earnings season continues. Intel, IBM and CSX will provide their quarterly figures today after the market closes. On the data front, weekly jobless claims fell more than expected to 900K and both housing starts and building permits surprised on the upside. The Philadelphia Fed Manufacturing Index  surged to 26.5 in January from a downwardly revised 9.1 in December and well above analysts' forecasts of 12. It was the highest reading since October.

US30 finished yesterday's session higher however buyers struggle to break above the 31,150 pts level despite the positive market sentiment. In case a profit taking occurs and downward correction starts, one should focus on 30,500 pts level. On the other hand as long as the price sits above the lower limit of the ascending channel, continuation of an upward trend seems more probable. The next resistance to watch  lies at  the upper limit of the aforementioned ascending channel. Source: xStation5 

Travelers (TRV.US) stock rose almost 2% in the premarket after the company posted upbeat quarterly results. The insurance company earned $4.91 per share, well above the analysts' expectations of $3.18 a share. Revenue came in line with market estimates as the company reported lower number of catastrophe claims, a  8.4% increase in renewal premiums and good underwriting figures.

Travelers (TRV.US) stock launched today’s session higher and brokeabove the major resistance at $145.15. If the current sentiment prevails, upward move could be extended to the $155.40 level where all-time highs are located. However if sellers manage to regain control and break below the aforementioned $145.15 level, then downward impulse toward support at $ 139.83 could be launched. Source: xStation5

Truist Financial (TFC.US) posted quarterly earnings of $1.18 per share, well above market forecasts of 97 cents a share. Revenue also came in above expectations, thanks to superb performance of its investment banking and commercial real estate businesses.

Baker Hughes (BKR.US) posted a quarterly loss of 7 cents per share, while Wall Street expected 17 cents per share profit. Revenue beat market expectations. The oilfield services company said it was pleased with its 2020 performance considering the impact of the pandemic and industry downturn, and that it is well-positioned for the current environment.

SolarEdge Technologies (SEDG.US) shares rose 3% in the premarket after Morgan Stanley rated the company's stock “overweight”. Investment bank believe that the solar equipment maker is in a position to gain share in a fast-growing market.

Tesla (TSLA.US) – number of registrations in California, which is Tesla's biggest US market, surged almost 63% in the fourth quarter, partially thanks to positive reception of its Model Y crossover.