Salem Radio Network News Thursday, July 29, 2021


Wall Street set to open higher as banks, energy stocks rebound

By Devik Jain and Shreyashi Sanyal

(Reuters) – U.S. stock indexes were set to open higher on Friday, as energy and banking shares rebounded from a sharp selloff that was triggered by growth worries and has put the indexes on track for their biggest weekly fall since mid-June.

Energy firms such as Exxon Mobil Corp, Devon Energy Corp, Schlumberger NV, Occidental Petroleum Corp and Halliburton Co rose between 0.9% and 1.4% in premarket trading, tracking firmer oil prices. [O/R]

Rate-sensitive lenders Wells Fargo & Co, Morgan Stanley, JP Morgan Chase & Co, Citigroup Inc, Goldman Sachs Group Inc and Bank of America Corp gained between 1.5% and 1.7%, as the benchmark 10-year Treasury yield snapped an eight-day losing streak. [US/]

Among companies benefiting from economic reopenings, cruise operators Royal Caribbean Cruises Ltd and Carnival Corp added more than 2.5% each, while carriers United Airlines Holdings and American Airlines Group Inc rose about 2% each.

Wall Street’s main indexes slid on Thursday, with the S&P 500 and the Nasdaq pulling back from record closing highs as investors flocked to bond markets on concerns that the domestic economic recovery was losing steam.

“The market was at a high point and it needed to pull back a little bit and it did yesterday,” said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.

The focus will now shift to second-quarter earnings, with big banks reporting next week. Analysts expect earnings growth of 65.4% for companies in the S&P 500 index in the quarter, up from a previous forecast of 54% growth at the start of the period, according to Refinitiv IBES data.

“Once we enter earnings season, we will expect a sort of cushion for the market … it won’t just be a certain group of companies that are expected to report strong earnings, it will be most sectors of the market,” Cardillo said.

Graphic: Q2 expected to see peak results for U.S. companies –

The S&P 500 is down 0.7% so far this week, while the Dow has declined 1%. The Nasdaq is set to post a smaller weekly decline of 0.5%, helped by a recent move into growth companies, but was still on course for its worst week since mid-May.

At 8:19 a.m. ET, Dow e-minis were up 253 points, or 0.74%, S&P 500 e-minis were up 21 points, or 0.49%

Nasdaq 100 e-minis lagged its peers as it rose 11.75 points, or 0.08%, with mega-cap technology stocks Google owner-Alphabet Inc, Facebook Inc, Apple Inc, Microsoft Corp and trading mixed.

Levi Strauss & Co gained 3.7% as it forecast a strong full-year profit after beating quarterly earnings estimates on improving demand across its markets for jeans, tops, and jackets.

U.S.-listed shares of Chinese ride-hailing company Didi Global Inc rose 3.1% after four sessions of losses as it was recently hit by an investigation from China’s internet watchdog.

General Motors Co firmed 3.7% after Wedbush started coverage of the automaker’s stock with an “outperform” rating.

(Reporting by Devik Jain and Shreyashi Sanyal in Bengaluru; Editing by Arun Koyyur, Aditya Soni)


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