WASHINGTON (AP) — President Donald Trump promised tax cuts Friday “which will be the biggest in the history of our country” following Senate passage of a $4 trillion budget that lays the groundwork for Republicans’ promised tax legislation. Republicans hope to push the first tax overhaul in three decades through Congress by year’s end, an […]
Wall St. set to open higher as beaten down tech stocks rebound
By Tanya Agrawal
(Reuters) – U.S. stocks looked set to open higher on Monday as investors snapped up beaten down technology and retail stocks.
The S&P technology sector <.SPLRCT> is coming off its second straight weekly decline, triggered by fears over stretched valuations and investors moving money to other sectors. Tech stocks have led the S&P 500’s 8.7 percent rally this year.
Leading the rebound, Apple <AAPL.O>, Microsoft <MSFT.O> and Alphabet <GOOGL.O> were all up about 1 percent in premarket trading.
Retail stocks were battered on Friday after Amazon.com’s <AMZN.O> $13.7 billion deal to buy upscale grocer Whole Foods <WFM.N>.
The deal by Amazon, a proven retail disruptor, marked a major step by the internet retailer into the brick-and-mortar retail sector.
Amazon was up 0.8 percent, while Wal-Mart <WMT.N>, Target <TGT.N> and Kroger <KR.N> gained between 0.8 percent and 1.8 percent on Monday.
Dow e-minis <1YMc1> were up 71 points, or 0.33 percent, with 25,503 contracts changing hands at 8:42 a.m. ET (1242 GMT). S&P 500 e-minis <ESc1> were up 7.25 points, or 0.3 percent, with 138,274 contracts traded. Nasdaq 100 e-minis <NQc1> were up 43.5 points, or 0.77 percent, on volume of 38,221 contracts.
New York Fed President William Dudley, a close ally of Fed Chair Janet Yellen, said U.S. inflation was a bit low but should rise alongside wages as the labor market continues to improve, allowing the Federal Reserve to continue gradually tightening U.S. monetary policy.
Yellen’s confidence as her team raised interest rates for the third time in six months last week surprised investors who had expected more caution about the economy following a batch of weak U.S. economic data.
“The absence of macro data today shifts the focus back to the Fed as two Fed members Dudley and Evans speak today. We suspect, an upholding of least one more rate hike will likely be supported,” said aid Peter Cardillo, chief market economist at First Standard Financial in New York.
Last month, the U.S. economy added 138,000 jobs, well below the expected gain of 185,000, while other data showed a fall in retail sales and inflation below the Fed’s target of 2 percent.
European stocks were headed for their biggest rise in two months, helped by a meaty parliamentary majority for pro-business French President Emmanuel Macron.
Oil prices edged higher, after coming under pressure over the past month from rising production. [O/R]
Clovis Oncology <CLVS.O> soared 47 percent to $87.90 after the biotechnology company’s ovarian cancer drug was set for a label expansion.
(Reporting by Tanya Agrawal; Editing by Saumyadeb Chakrabarty)
- Senate GOP backs budget, clears way for tax overhaul
Oct 20, 2017
- Trump nails Obamacare with decision to cut off billions in subsidies
Oct 13, 2017
- Russia probe special counsel interviews ex-Trump chief of staff Priebus
Oct 13, 2017
- NFL to tackle protests as Trump decries ‘disrespectful’ players
Oct 16, 2017
- Senate health care deal in doubt as Trump says he’s opposed
Oct 18, 2017
Editorial CartoonsView More »
Mon, Oct 9, 2017