Wall St set to open higher as banks report strong quarter

- Advertisement -

(Businesshala) – Wall Street’s main indexes were set for a strong open on Thursday after big banks reported better-than-expected quarterly results, helping investors stay away from inflation concerns.

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, US, October 13, 2021. Businesshala/Brendan McDermid

Lenders Bank of America and Wells Fargo and Citigroup topped market expectations for third-quarter profit, helped by issuing reserves to cover loan losses.

- Advertisement -

Investment bank Morgan Stanley posted a higher-than-expected quarterly profit, as it closed more deals and generated a record $1.27 billion from the advisory business.

His shares jumped between 0.8% and 2.7% in premarket trading.

“Investors are generally anticipating a mostly positive earnings season,” said David Swank, portfolio manager at Hood River Capital Management.

“Certainly there are pockets of speculation out there where things seem bleak, but overall, the valuation isn’t too bad.”

Analysts expect Corporate America to report strong quarterly profit growth and focus on companies’ comments on how they are going to fight rising costs, labor shortages and supply chain disruptions.

Meanwhile, data showed the number of Americans filing new claims for unemployment benefits fell to near a 19-month low last week, while a separate report showed that the manufacturer’s tally in the 12 months through September Prices have gained 8.6%.

The report came a day after a sharp increase in consumer prices in September, further cementing the case for a Fed interest rate hike.

The S&P 500 and Nasdaq ended higher on Wednesday led by mega-cap technical names, with the Federal Reserve indicating it may begin to ease its crisis-era support by mid-November, worrying many policymakers. that high inflation may last longer than previously thought. Thinking.

At 8:40 a.m. ET, the Dow E-Minis were up 298 points, or 0.87%, the S&P 500 E-Minis was up 41.25 points, or 0.95%, and the Nasdaq 100 E-Minis was up 161.5 points, or 1.09%.

Shares in growth names including Facebook Inc, Microsoft Corp, Amazon.com Inc, Tesla Inc, Apple Inc and Google-parent Alphabet pointed to positive openness.

Energy firms including Chevron Corp and Exxon Mobil rose 0.9% and 1.3%, respectively, tracking Brent crude prices, which were above $84 a barrel. [O/R]

UnitedHealth Group Inc. rose 2.8% after the health insurer beat analysts’ estimates for third-quarter profit, helped by a jump in revenue from its Optum unit that manages drug profits.

Walgreens Boots Alliance Inc rose 1.5% after reporting a 68% increase in fourth-quarter profit on strong pharmacy, retail sales.

US-listed shares of Taiwan Semiconductor Manufacturing Co Ltd added 3.7% after the chipmaker jumped 13.8% in quarterly profit and raised its revenue growth forecast for 2021, citing an “industry megatrend” of strong chip demand.

Domino’s Pizza Inc slipped 3.6% after reporting a surprise drop in US same-store sales due to a slowdown in delivery demand.

Reporting by Devik Jain in Bengaluru and Federica Urso in Gdansk; Editing by Arun Koyur


- Advertisement -

Stay on top - Get the daily news in your inbox

DMCA / Correction Notice

Recent Articles

Related Stories

Stay on top - Get the daily news in your inbox