US OPEN: Wall Street regains ground

• US indices launched today's cash trading higher
• Data from US labour market below expectations
• Johnson & Johnson (JNJ.US) stock gains after upbeat quarterly results

Major Wall Street indices launched today’s session higher, attempting to erase yesterday's losses following upbeat quarterly results from several big companies. On the data front, building permits fell 0.6% to an annualized rate of 1.685 million in June, the lowest level since September last year and compared to analysts’ estimates of 1.65 million. Housing starts dropped 2% MoM to an annualized rate of 1.559 million units in June, level not seen since September 2021. Both readings fell, but not as strong as in previous months. The data in combination with the previous readings on retail sales do not increase the chances of a 100bp hike by the Fed (as indicated by Waller), but at the same time there are no more negative signals from this market.

US500 launched today's session higher and is currently testing major resistance at 3885 pts which is marked with previous price reactions. Should break higher occur, upward move may accelerate towards  next resistance at 4190 pts. However should negative moods return to the markets, another downward impulse towards support at 3800 pts may be launched. Source: xStation5

Company news:

Johnson & Johnson (JNJ.US) stock rose over 1.0% after the health-care company posted quarterly profit of $2.59 per share, beating analysts’ estimates of $2.54 cents a share. Revenue also topped market estimates. Company lowered its full-year financial outlook, mostly due to the strength of the U.S. dollar rather than operational issues.

Johnson & Johnson (JNJ.US) stock price has been trading within triangle formation in recent months. Stock rose slightly on Tuesday following upbeat quarterly results and if current sentiment prevails, price may be heading towards the upper limit of the aforementioned formation. On the other hand, should sellers regain control, nearest support to watch lies at $168.20. Source: xStation5

IBM (IBM.US) stock fell nearly 6.0% in premarket despite posting better than expected second quarter results. Tech giant warned of a $3.5 billion impact to earnings due to the strong US dollar.

Hasbro (HAS.US) stock rose slightly in premarket after the toy maker posted mixed quarterly results. Company earned $1.15 per share, well above analysts’ estimates of 0.94 cents a share, while revenue fell slightly below expectations. Company is working on cost reductions.

Lockheed Martin (LMT.US) stock dropped nearly 5.0% after weapons producer cut its 2022 guidance and earnings targets after F-35 fighter jet sales fell amid pandemic-related headwinds.