US Open: Wall Street extends 7-week uptrend

• U.S. indices gain slightly at the start of the week
• Nippon Steel has agreed to buy U.S. Steel at $55 per share
• Southwest Airlines has reached a settlement with the U.S. Department of Transportation over a $140 million fine

The Wall Street indices started today's trading slightly higher. The S&P 500 and Nasdaq gained 0.2% at the opening, while the Dow Jones rose 0.1%. The Russell 2000 index is currently in the area of key resistance. The economic calendar for today is empty, with earnings releases driving stock market movements. Tomorrow, the BoJ decision and the RBA Minutes may provide a bit more volatility.

Source: xStation5

The US200 index is currently trading in a key resistance zone defined by the local peaks of 2023. A firm breakout above this structure could lead to further rallies towards the barrier set by the 50% Fibo retracement of the downward wave initiated on November 11, 2021. On the other hand, we can now consider the 38.2% Fibo retracement of the previously mentioned downward wave as the main region of support. 

News from companies

United States Steel (X.US) shares gain 32% after Nippon Steel agreed to buy U.S. Steel at $55 per share (nearly 40% higher than Friday's closing price).

Southwest Airlines (LUV.US) has reached a settlement with the U.S. Department of Transportation over a $140 million fine in connection with last year's holiday season airport delays. The airline separately paid about $600 million to reimburse travelers. The company's shares are currently losing nearly 1%.

Adobe (ADBE.US) shares gained 2% after the company agreed to terminate a $20 billion merger agreement with Figma, as the companies face various regulatory hurdles.

Stock analysts

• The target price for Affirm Holdings (AFRM.US) shares was raised to $35 per share against the $21 recommended earlier by JP Morgan. The bank believes the company has steady growth metrics and is strengthening its profitability and credit action.
• The target price for General Dynamics Corp (GD.US) shares was raised by Piper Sandler to $345 against the previous $302. The financial institution believes that the war in Ukraine, tensions in the Middle East and the modernization trend in the US Department of Defense have increased global demand for munitions. 
• The target price for shares of Take-Two Intercative Software (TTWO.US) was raised by Jefferies to $195 from the previous $165. The main reason for this change is the euphoric attitude towards the announced 2025 release of the GTA VI game.