US EQUITY OPEN: Stocks move higher on soft US CPI

** US EQUITY OPEN: Stocks move higher on soft US CPI; Tech supported by MU earnings beat and reports of increased OpenAI (?? LN) valuation**

• US stocks opened higher, driven by Micron's strong earnings, OpenAI's valuation increase, and softer-than-expected US CPI data.
• Tech and Consumer Discretionary sectors led gains, while Energy lagged.
• The Dollar index is slightly lower, with GBP outperforming after the BoE rate cut.

US stocks have opened on a positive note, buoyed by several key developments. Micron Technology (MU) reported robust earnings, surpassing expectations and providing strong guidance, which has bolstered sentiment in the tech sector. Additionally, OpenAI's valuation reportedly increased by 50% in its latest share sale round, further supporting tech stocks. The US Consumer Price Index (CPI) for November came in cooler than anticipated, providing relief to market participants concerned about inflationary pressures.

The Tech and Consumer Discretionary sectors are leading the gains, reflecting investor optimism in these areas. In contrast, the Energy sector is underperforming, following a strong showing on Wednesday. This divergence highlights the shifting focus of traders as they react to sector-specific news and broader economic indicators.

In the foreign exchange market, the Dollar index is modestly lower, having pared most of its losses following the soft CPI data. The British Pound is outperforming after the Bank of England cut interest rates by 25 basis points, a move that was widely expected. However, the decision was accompanied by more hawkish dissent than anticipated, which has provided additional support to the GBP. Meanwhile, the Euro remains relatively stable against the Dollar after the European Central Bank held rates steady.

Treasuries have firmed since the release of the US CPI report, although trading has been choppy. Market participants are questioning the accuracy of US data due to sampling errors arising from the recent government shutdown. This uncertainty is contributing to volatility in the bond market.

Crude oil prices are firmer but have trimmed gains following President Trump's national address, which did not escalate tensions with Venezuela or Russia as some had feared. This has provided some stability to the energy markets, although traders remain cautious.

In stock-specific news, Lululemon (LULU) announced plans to expand into six new markets by 2026, and Elliott Management has built a stake exceeding USD 1 billion in the company. Coinbase (COIN) has begun rolling out stock trading and access to the prediction market for US users, marking a significant expansion of its services. Accenture (ACN) and FactSet Research (FDS) both issued underwhelming profit outlooks, which could weigh on their respective stocks. Instacart (CART) is under investigation by the FTC regarding its Eversight pricing tool, adding regulatory risk to its profile.

Trader Insight:

• Some traders may consider positioning in Micron (MU) following its strong earnings report and guidance.
• Market participants are watching the GBP/USD pair closely after the BoE rate cut and hawkish dissent.
• Observers are monitoring the Energy Select Sector SPDR Fund (XLE) for potential shifts in energy sector sentiment.
• Traders could assess risk in Accenture (ACN) and FactSet Research (FDS) given their disappointing profit outlooks.
• The US 10-Year Treasury yield is being closely watched as participants evaluate the impact of recent CPI data and government shutdown-related data concerns.

Disclaimer: This is not trading advice. For informational purposes only.