US OPEN: Wall Street opens higher after weak inflation data

• Lower-than-expected inflation data
• Reddit community focus on cannabis stocks
• Twitter (TWTR.US) Q4 2020 earnings beat expectations

US indices launched today's session higher and reached new record highs despite the fact that recent inflation came in below analysts’ expectations. Meanwhile politicians continue to negotiate the size of the next stimulus package. President Joe Biden has proposed a $1.9 trillion bill, which some economists have warned could spur an outbreak of inflation. Other experts say there’s plenty of room for fiscal stimulus without fear of a more durable increase in price pressures. Also upbeat quarterly earnings from Cisco, Lyft, Mattel, Twitter, Coca-Cola, Under Armour and General Motors lifted market sentiment. Uber will report today after the closing bell. Meanwhile traders from Reddit community focused their attention on cannabis companies. Shares of Tilray (TLRY.US) Inc and Aphria (APHA.US) both surged today. Changes promised by some in President Joe Biden's party could help give cannabis companies access to more traditional methods of banking and open the sector to new, institutional investors.

US100 bounced off the lower limit of the ascending channel and is currently trading around its ATH at 13.771 pts. If the current sentiment prevails, another upward impulse towards upper limit of the channel could be launched. On the other hand, if sellers manage to break below the lower limit of the formation, then a bigger downward correction may start.  Nearest support lies at 13.625 pts. Source: xStation5

Twitter (TWTR.US) stock surged nearly 9% in premarket trading, after the social media giant reported quarterly earnings of 38 cents per share, while analysts expected earnings of 31 cents per share. Revenue also beat Wall Street projections. Twitter’s reported 27% user growth which came in below market expectations and it warned that growth would slow in upcoming quarters. 

Twitter (TWTR.US) stock launched today’s session with a massive bullish price gap. If current sentiment prevails, the upward move could be extended to the $74.73 handle, where all-time highs are located. The nearest support is located at $60.00 level. Source: xStation5

Under Armour (UA.US) stock rose 5% in premarket after the company reported quarterly earnings of 12 cents per share, compared to market estimates of a 7 cents per share loss. The athletic apparel maker revenue also came in above expectations due to strong online sales figures. 

General Motors (GM.US) reported better than expected quarterly figures. The automaker earned $1.93 per share beating market estimates by 29 cents a share. Revenue also came in above analysts expectations despite production interruptions caused by the pandemic. 

Lyft (LYFT.US) shares rose 10% premarket trading after the company reported a smaller-than-expected quarterly loss of 58 cents per share. Meanwhile analysts expected loss of 72 cents per share. Revenue surprised on the upside. The ride-sharing service also said it could become profitable by the third quarter of this year, three months sooner than it previously projected.

Uber (UBER.US) shares jumped  5.9% in premarket ahead of the company’s quarterly earnings, gaining a boost from rival Lyft’s solid results.