US OPEN: Wall Street rebounds as yields pull back

• US stocks opened higher as yields move lower
• Weekly jobless claims rose unexpectedly
• Ford (F.US) stock under pressure after analyst downgrade

Major Wall Street indices bounced off recent lows today, with the Dow Jones surging more 0.58% while the S&P 500 added more than 0.8% The Nasdaq, which dipped more than 10% on Wednesday from its November 2021 all-time high, indicating a technical correction,  jumped over 1%  at the beginning of today's session. Treasury yields retreated for a second day from recent 2-year highs and currently stand at 1.82%, which together with upbeat earnings provides some support for stocks. On the data front, jobless claims unexpectedly rose to the highest in 3 months, while the Philly Fed manufacturing index surprised on the upside. On the corporate front, Netflix will report its quarterly results after the closing bell. 

US100 fell sharply during yesterday's session, however downward move was halted around psychological support around 15000 pts which coincides with 200 SMA (red line) and lower limit of the descending channel. Index launched today's session higher and is testing local resistance at 15275 pts which is marked with lower limit of the 1:1 structure and previous price reactions. Should a break higher occur, the next target for bulls is located around the upper limit of the channel. However, if sellers manage to regain control, then support at 14073 may be at risk. Source: xStation5

Company news:

Ford (F.US) shares fell 2% in the premarket after Jefferies downgraded the auto producer stock to “hold” from “buy” as the optimism over Ford’s electric vehicle plans drove the stock higher than was justified and left very little potential upside.

Ford (F.US) stock fell sharply on Wednesday and price is approaching major support area around $20.80 which is marked with lower limit of the 1:1 structure and 23.6% Fibonacci retracement of the upward wave launched in March 2020. Should break lower occur, downward impulse may accelerate towards next support at $17.65. On the other hand, if buyers manage to halt declines, another upward impulse towards recent high at $26.00 may be launched. Source: xStation5

United Airlines (UAL.US) stock fell 1.0% after the company recorded a quarterly loss of $1.60 per share, narrower than the $2.11 loss that analysts were anticipating. Revenue  beat expectations, however the company predicted its capacity will stay below pre-pandemic levels all year.

Travelers (TRV.US) – The insurance company reported a quarterly profit of $5.20 per share, well above the $3.86 consensus estimate, with revenue also beating analyst forecasts. Travelers benefited from stronger results in investment income and underwriting, and its stock added 2.5% in the premarket.

McDonald’s (MCD.US) is expanding its test of the plant-based McPlant burger, created as part of its partnership with Beyond Meat (BYND.US).

Electronic Arts (EA.US) – could be the next attractive target in the gaming sector following Microsoft’s (MSFT.US) deal to buy Activision Blizzard (ATVI.US), according to a column in today’s Financial Times.