US OPEN: Wall Street opens higher despite jump in jobless claims

• Biden announces huge infrastructure plan
• S&P 500 above 4000 pts
• Weekly jobless claims higher than expected
• CarMax (KMX.US) stock fell 3.5 % on acquisition news

US indices launched today's session higher, with S&P 500 at new all-time highs, despite the fact that recent data showed initial claims rose unexpectedly last week but still remain close to their lowest level in a year, as more businesses reopened thanks to the vaccine rollout programme and the massive stimulus package. US President Biden announced a $2.25 trillion infrastructure plan which includes $621 billion for transportation, $580 billion for manufacturing and $400 billion to care for the elderly and disabled. However, these plans are likely to meet with strong GOP opposition, as the projects are set to be founded by higher corporate taxes.

US100 managed to break above the major resistance level at 13046 pts and 200 SMA (red line) during yesterday’s session. Today the index is approaching another strong resistance at 13.270 pts which coincides with the upper limit of the ascending channel. Should a break higher occur, then upward move may be extended to the 13500 pts handle. On the other hand if sellers will manage to regain control then another downward impulse towards lower limit of the channel could be launched. Source: xStation5

CarMax (KMX.US) stock fell 3.5 % in premarket after the company posted quarterly earnings of $1.27 per share, with revenue essentially in line with forecasts. The auto retailer plans to acquire the remaining part of Edmunds that it didn’t already own, in a cash-and-stock deal valuing the auto information provider at $404 million. 

CarMax (KMX.US) stock launched today’s session with a bearish price gap. Price broke below the major support  at $128.87 and upward trendline. If current sentiment prevails next support at $116.39 may be at risk. On the other hand, if buyers will manage to regain control and break above the aforementioned trendline, then another upward move towards all-time high at 136.63 could be launched. Source: xStation5

Pfizer (PFE.US) announced its coronavirus vaccine appears highly protective against the South Africa variant. According to updated data, the vaccine is around 91% effective at preventing COVID-19 and was 100% effective in preventing illness among trial participants in South Africa, where the B1351 variant is dominant. Vaccine was 95% effective in preventing severe disease as defined by the FDA.

Johnson & Johnson (JNJ.US) stock fell more than 1% in premarket after the company announced that a batch of its Covid-19 vaccine produced in the Baltimore factory did not meet quality standards and will not be distributed. The problem appeared due to quality issues for a vaccine ingredient made by Emergent BioSolutions.

Exxon (XOM.US) stock rose 0.5% in premarket after the oil giant signaled it could post its first profit in five quarters, thanks to recent rise of oil and gas prices.