Wall Street set to rise after Monday’s selloff as earnings take center stage

In this news, we discuss the Wall Street set to rise after Monday’s selloff as earnings take center stage.

(Reuters) – Major Wall Street indices were expected to rebound Tuesday from the worst day of the month for the benchmark S&P 500 as investors analyzed a deluge of corporate earnings, while bracing for volatility ahead of ballot.

Merck & Co Inc MRK.N gained 1.2% pre-market as it increased its profit forecast for the full year. Drugmaker Eli Lilly and Co LLY.N fell about 4% after its quarterly profit was hit by rising costs to develop a COVID-19 treatment.

Microsoft Corp MSFT.O strengthened 0.8% as its results approach after the closing bell. Apple Inc AAPL.O, Amazon.com AMZN.O, Google-parent Alphabet GOOGL.O and Facebook Inc FB.O, which accounts for about a fifth of the total value of the S&P 500, is also releasing its results this week.

“The growth of the virus in the United States is looming, and technology in particular appears to be the least exposed sector,” said Rick Meckler, partner at Cherry Lane Investments, a family-owned investment office in New Vernon, New Jersey.

“A focus on big tech companies can cause this market to rally despite the problems the virus is creating.”

A record number of new coronavirus infections in the United States and some European countries and a stalled fiscal stimulus in the United States raised concerns about an emerging economic recovery, sending the three major US stock indexes back to almost four weeks on Monday .

Wall Street’s .VIX fear gauge reached its highest level in nearly two months due to uncertainty over the election outcome.

Democratic challenger Joe Biden leads President Donald Trump in national polls, but the race is much closer in the battlefield states that determine the election outcome.

At 8:09 a.m. ET, Dow E-minis 1YMcv1 rose 0.32% to 27,669 points and the S&P 500 E-minis EScv1 was up 0.46% to 3,409 points. The Nasdaq 100 E-minis NQcv1 rose 0.61% to 11,563 points.

American International Group Inc insurer AIG.N jumped 6.4% after its board of directors approved a plan to separate life and retirement activities from the rest of the company and appointed chairman Peter Zaffino to the post Chief Executive Officer, beginning next year.

Semiconductor designer Advanced Micro Devices Inc AMD.O rose 0.3% on agreeing to buy Xilinx Inc XLNX.O in a $ 35 billion all-stock deal that will escalate its battle with Intel Corp INTC.O in the data center chip market. Xilinx shares climbed about 15%.

Industrial companies 3M Co MMM.N and Caterpillar Inc CAT.N also fell about 1% after reporting their results.

Report by Medha Singh and Shivani Kumaresan in Bengaluru; Editing by Anil D’Silva and Saumyadeb Chakrabarty

Original © Thomson Reuters

Originally posted 2020-10-27 19:06:11.

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