US OPEN: Wall Street opens lower on strong retail sales data

• US indices launched today's cash trading lower

• US retail sales rose more than expected in January

• Airbnb (ABNB.US) stock surges on upbeat financial results

Three major Wall Street indices launched another session in red, with Dow Jones trading 0.50% lower, while S&P500 and Nasdaq fell 0.55% and 0.3% respectively as the Commerce Department report showed retail sales rebounded 3% in January, a sharper increase than expected, complicating the Federal Reserve's task to cool the economy. Earlier hawkish Fed speeches and yesterday's inflation data dampened hopes of a pause in the central bank's tightening cycle. 

S&P 500 index stocks categorized by sectors and industries. Size represents market cap. Source: xStation5

Core retail sales growth also beat on a MoM basis but the YoY slipped to just +4.4% - lowest since March 2022. Nevertheless fresh data reinforces expectations that FED will stick to its tightening path. Source: Bloomberg via ZeroHedge

US2000 pulled back sharply in recent days' as buyers failed to break above resistance at 1960 pts, which coincides with 38.2% Fibonacci retracement of the downward wave launched in November 2021. If current sentiment prevails, downward move may deepen towards next key support at 1840 pts. Source: xStation5

Company news:

Airbnb (ABNB.US) shares jumped nearly 10.0% before the opening bell after the home-sharing company posted upbeat Q4 results. Company earned 48 cents per share, well above market estimates of 25 cents. Revenue of $1.90 billion also topped analysts’ projections of $1.86 billion.

Airbnb (ABNB.US) stock launched today's session with a massive bullish price gap and is trading above support at $131.70 which is marked with 38.2% Fibonacci retracement of the last downward wave. If current sentiment prevails, an upward move may accelerate towards local resistance at $147.50. Source: xStation5

Kraft Heinz (KHC.US) stock rose over 2.0% in premarket after the food and beverage company posted better than expected quarterly results and expects for the current fiscal year in the region between $2.67 and $2.75 a share, below FactSet consensus estimate of $2.77 a share. 

Taiwan Semiconductor Manufacturing (TSM.US) stock plunged nearly 4.0% in off-hours trading after Warren Buffett’s Berkshire Hathaway cut its stake in the latest quarter by about 86% from the third quarter, an unusual move for an investor known to hold shares for the long-term.

Tripadvisor (TRIP.US) stock surged over 11.0% after the online travel company reported better than expected fourth-quarter revenue, earnings and cash flow that were higher than analysts’ estimates.