Wall Street will open higher as banks report strong quarters

The trader works on the floor of the New York Stock Exchange (NYSE) in New York City, USA on October 13, 2021. REUTERS / Brendan McDermid

October 14, 2021

By Devik Jain

(Reuters)-Wall Street’s key index was set to a strong open Thursday after big banks reported better-than-expected quarterly results, helping investors look away from inflation concerns.

Creditors Bank of America, Wells Fargo and Citigroup exceeded market expectations for third-quarter profits, supported by the release of reserves to cover bad debt losses.

Investment bank Morgan Stanley posted higher-than-expected quarterly profits as it closed more transactions and generated a record $ 1.27 billion from its advisory business.

Their share surged between 0.8% and 2.7% in pre-market transactions.

David Swank, Portfolio Manager at Hood River Capital Management, said:

“There are certainly pockets of speculation where things seem to be bubbling, but overall, the rating isn’t too bad.”

Analysts expect U.S. companies to report significant quarterly profit growth, focusing on comments from companies on how to combat rising costs, labor shortages and supply chain disruptions. Guess.

Meanwhile, data show that the number of Americans claiming new unemployment benefits approached a 19-month low last week, with another report showing producer prices rising 8.6% in the 12 months to September. Was shown.

The report came the day after consumer prices rose steadily in September, further strengthening the case of the Fed’s rate hike.

The S & P 500 and Nasdaq closed high on Wednesday, driven by the tech name of Megacap, after the Federal Reserve Board suggested that it could begin to reduce support during times of crisis by mid-November. .. idea.

At 8:40 am ET, the Dow e-mini rose 298 points (0.87%), the S & P 500 e-mini rose 41.25 points (0.95%), and the Nasdaq 100 e-mini rose 161.5 points (1.09%). Did.

Shares of growing companies such as Facebook Inc, Microsoft Corp, Inc, Tesla Inc, Apple Inc, and Google’s parent company Alphabet show a positive openness.

Energy companies, including Chevron Corp and ExxonMobil, tracked Brent crude oil prices above $ 84 a barrel, rising 0.9% and 1.3%, respectively. [O/R]

UnitedHealth Group Inc rose 2.8% after healthcare companies exceeded analysts’ third-quarter earnings forecasts. This is underpinned by a surge in revenue from the Optum unit, which manages the benefits of medicines.

Walgreens Boots Alliance Inc increased 1.5% after reporting a 68% surge in fourth-quarter profits due to strong pharmacy and retail sales.

Taiwan Semiconductor Manufacturing Co Ltd’s US-listed stocks increased 3.7% after chip makers increased quarterly profits by 13.8% and raised their earnings growth forecast for 2021. This is due to the “industry megatrend” of strong tip demand.

Domino’s Pizza fell 3.6% after pizza chains reported an unexpected decline in same-store sales in the United States due to slowing delivery demand.

(Report by Devik Jain in Bangalore and Federica Urso in Gdansk, edited by Arun Koyyur)

Wall Street will open higher as banks report strong quarters

Source link Wall Street will open higher as banks report strong quarters

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