US OPEN: Wall Street rebounds as US economy grows faster than expected

• US stocks opened higher
• US economy expanded more than expected in Q4
• McDonald’s (MCD.US) stock dips after weak quarterly results

US indices launched today's session sharply higher, with the Dow  surging more than 1.5% and both the S&P 500 and the Nasdaq adding more than 1.6% each as investors digest the latest FOMC statement and mixed earnings reports. The Federal Reserve signaled a rate hike in March, as expected, while it didn’t dismiss the possibility of rate hikes in every future meeting. On the data front, the US economy expanded a much better-than-expected 6.9% in Q4 while initial jobless claims came in line with market estimates.

US30 managed to erase early losses and is currently approaching the major resistance zone around 34720 pts which is marked with previous price reactions, 61.8% Fibonacci retracement of the upward wave launched in October 2021 and lower limit of the ascending channel. Source: xStation5

Company news:

McDonald’s (MCD.US) stock fell 2% in the premarket after the fast food giant posted weak results for the fourth quarter. Company earned $2.23 per share while analysts expected earnings of $2.34. Revenue figures also disappointed, hurt by higher expenses.

McDonald’s (MCD.US) stock has been moving downward since the beginning of January. Last week price broke below the lower limit of the 1:1 structure after which declines accelerated. Stock launched today's session with a bearish price gap, below the lower limit of the wedge formation. If current sentiment prevails, downward move may accelerate towards support at $236.40 which coincides with 23.6% Fibonacci retracement of the upward wave launched in March 2020. Source: xStation5

Comcast (CMCSA.US) stock rose more than 1% in premarket after the telecommunications company reported quarterly earnings of 77 cents per share, 4 cents above market estimates. Revenue also beat analysts’ projections. Company lifted its dividend by 8% and increased its share buyback program to $10 billion. 

Mastercard Inc (MA.US) reported a quarterly earnings of $2.35 per share beating analysts’ estimates of $2.21 per share. Revenue rose to $2.4 billion from $1.8 billion a year earlier as a rise in domestic spending and growth in cross-border volumes following an uptick in international travel drove higher transactions through its cards.

Blackstone (BX.US) shares surged 4% in premarket trading after The private equity firm posted solid quarterly figures. Blackstone reported  earnings per share of $1.71, well above Wall Street expectations of $1.37, supported by strong investment performance and record cash inflows.