US OPEN: Wall Street rebounds after last week's massive sell-off

• US indices launched today's cash trading higher

• US durable goods orders fall more than expected

• Union Pacific (UNP.US) stock surges after analysts upgrade

Three major Wall Street indices launched today's session sharply higher,trying to erase some of last week's loses, with Dow Jones trading 0.7% higher, while S&P 500 and Nasdaq rose 0.8% and 0.9% respectively as traders reassessed the outlook for monetary policy and growth following latest better than expected economic data. Markets now expect at least three more 25 bp hikes this year and see interest rates peaking at around 5.5% by June. This week market attention will focus on more US economic data, including consumer confidence, the ISM manufacturing survey, and corporate earnings. Meanwhile, durable goods orders, which measure the cost of orders received by manufacturers of goods meant to last at least three years, dropped 4.5% MoM in January, above analysts estimates of 4.0%, reversing from a downwardly revised 5.1% jump in December. 

S&P 500 index stocks categorized by sectors and industries. Size represents market cap. Source: xStation5

US Durable Goods Orders recorded the biggest fal since April 2020. Source: Bloomberg via ZeroHedge

On the other hand, Core Durable Goods (ex-Transports) rose 0.7% MoM (+0.1% exp) - biggest increase since March 2022. Source: Bloomberg via ZeroHedge

US30 fell sharply on Friday following the release of latest PCE figures, however buyers managed to halt declines around the key support zone at 32620 pts, which is marked with previous price reactions and 200 SMA (red line). As long as price sits above the aforementioned support, another upward move may be launched towards the key resistance zone around 33720 pts, which coincides with 61.8% retracement and 50 SMA (green line). On the other hand, should a break lower occur, downward move may deepen towards 38.2 Fibonacci retracement of the downward wave started in January 2022. Source: xStation5

Company news:

Union Pacific (UNP.US) stock jumped over 9.0% after Bank of America upgraded the railroad holding company to buy from neutral following news that CEO Lance Fritz would name a successor this year.  

Union Pacific (UNP.US) stock launched today's session with a bullish price gap and is testing key resistance zone at $214.00, which is marked with previous price reactions, lower limit of local descending channel and 38.2% Fibonacci retracement of the upward wave launched in March 2020. If buyers manage to push price above the aforementioned level, upward kve may accelerate towards next resistance at $238.50. On the other hand, if sellers manage to halt declines, then another downward move may be launched towards support at $192.50. Source: xStation5

Best Buy (BBY.US) stock fell 1.5% before the opening bell after Telsey Advisory Group downgraded the retailer to market perform from outperform as high inflation and rising interest rates will continue to weigh on the company's sales and profits this year.

Pfizer (PFE.US) stock fell over 1.0% in premarket  on news that the drug maker is in talks to buy the biogen company Seagen, which works on cancer drugs, in a deal worth over $30 billion.

Berkshire Hathaway (BRKB.US) stock rose slightly in premarket despite Warren Buffett's holding company reported its operating profits fell during the Q4 amid inflationary pressures. Buffet also criticized Democrat-driven introduction of a tax on stock buybacks. Buffett said the new measures were the brainchild of “economic illiterates” and “demagogues”, and argued that buybacks were an essential tool in the efficient deployment of capital.