US OPEN: Stocks climb as S&P 500, Nasdaq hit records

• S&P 500 and the Nasdaq hit new ATH
• Jobless claims climb for 2nd week
• Eli Lilly (LLY.US) received breakthrough therapy designation for its Alzheimer's treatment

US indices launched today's session sharply higher and the S&P 500 and the Nasdaq reached new all-time highs, as investors digest fresh macroeconomic data and recent comments from Fed officials. Weekly jobless claims rose again which may indicate that labour market recovery will take more time than expected. This is in line with the FED's narrative, which argues that the labor market still needs support. Durable goods orders came in below market estimates, while the GDP growth was unrevised at 6.4%. Meanwhile, Treasury Secretary Yellen remarked that inflation in the US should retreat by year-end from its current elevated level as supply bottlenecks get worked out while Fed Chair Powell pledged not to raise interest rates too quickly to support the economy.

US30 broke above 50 SMA (green line) and one can see that the upward move is supported by the inverse head and shoulders pattern. In case the current sentiment prevails, the index may move towards resistance at 34181 pts. However if sellers manage to regain control, then nearest support lies at 33627 pts. Source: xStation5

Eli Lilly (LLY.US) stock jumped nearly 9.0% in the premarket after The Food and Drug Administration described the company's Alzheimer's treatment as “breakthrough therapy”. The designation means the treatment may show substantial improvement over existing therapies and qualify it for expedited development and approval.

Eli Lilly (LLY.US) - yesterday buyers managed to halt declines at the 50 SMA (green line) and today stock launched the session with a massive bullish price gap and is testing its all-time high at $236.30. Source: xStation5

Accenture (ACN.US) shares more than 4% in premarket after the consulting firm posted upbeat quarterly figures. Accenture earned $2.40 per share, while analysts expected earnings of $2.23 per share. Revenue also beat market expectations thanks to higher demand for digital transformation services, with more companies moving to adapt to a hybrid work model. Company also lifted its full-year guidance.

Darden Restaurants (DRI.US) – owner of Olive Garden and other restaurant chains reported quarterly earnings of $2.03 per share well above market estimates of $1.79. Darden’s same-restaurant sales surged more than 90.0% compared to the same period last year.

KB Home (KBH.US) stock fell 4% in premarket after the home builder posted mixed quarterly figures. Company earned $1.50 per share, 18 cents a share above analysts’ projections. However, revenue figures disappointed, even despite the fact that a selling price increased 13% and a 145% surge in new orders.