US OPEN: Wall Street opens sharply higher on optimism about debt limit deal

• US stocks open higher amid relief at a temporary deal to put off a US government default
• Weekly jobless claims fell more than expected
• Twitter (TWTR.US) is planning to sell MoPub for $1 billion

US indices launched today's session sharply higher, continuing Wednesday’s midday comeback, as Congress appeared to near a deal that would raise the debt limit in the short term and avoid a disastrous government default. Also recent rally of the energy commodities showed signs of cooling off, easing some concerns over a global energy crisis. On the data front, weekly jobless claims showed a bigger-than-expected drop last week.

US500 launched today’s session sharply higher and broke above resistance at 4382.5 pts which coincides with EMA 100 (purple line). If current sentiment prevails then the upward move may accelerate towards next resistance at 4435 pts which is marked by the upper limit of the 1:1 structure and 200 SMA (red line). Source: xStation5

Company news:

Twitter (TWTR.US) shares added more than 2.0% in premarket after the social media giant announced plans to sell mobile ad company MoPub to AppLovin Corp for $1.05 billion. Twitter plans to focus more on advertisements on its own app and website. 

Twitter (TWTR.US) stock has traded sideways recently between support marked with the 38.2% retracement of the upward move launched in March 2020 ($57.45 area) which coincides with lower limit of the triangle formation and resistance marked with the 23.6% retracement ($66.80 area) and upper limit of the formation. Only a decisive break out of the consolidation zone could lead to bigger price movements. Source: xStation5

Conagra Brands (CAG.US) stock rose over 1% in premarket after the  food company reported quarterly earnings of 50 cents per share, slightly beating analysts’ expectations while revenue also topped market projections. Company also plans to achieve its full-year targets despite rising inflation.

Tilray (TLRY.US) stock rose more than 2.0% in premarket after the cannabis producer announced  a 43% rise in first-quarter revenue, as retail cannabis stores in Canada started to reopen in mid-June.

Meredith Corp. (MDP.US) stock surged more than 6% in premarket  after the media company agreed to be bought by Dotdash – the digital media arm of IAC/Interactivecorp (IAC.US) – for about $2.7 billion in cash or $42.18 per share.  Meredith had agreed earlier this year to sell its TV stations to Gray Television for $2.83 billion.