© Reuters. A trader walks in front of the New York Stock Exchange in New York City
By Shreyashi Sanyal and Sruthi Shankar
(Reuters) – Wall Street major indices were set to rise on Monday after a week of broadly positive earnings boosted expectations of sustained earnings growth for companies. Investors waited for data to measure the pace of the country’s economic recovery.
With more than half of the companies already reporting results, first-quarter earnings will grow 46% compared to projections of 24% growth in early April, according to IBES data from Refinitiv.
Megacap technology stocks rose in premarket trading with Apple Inc (NASDAQ :), Amazon.com Inc (NASDAQ :), Alphabet (NASDAQ 🙂 Inc, and Microsoft Corp. (NASDAQ 🙂 between 0.2% and 0.7%, after largely positive results were achieved in the previous week.
The improvement in economic data, strong earnings, fiscal stimulus and the highly accommodative stance of the Federal Reserve have propped up markets, pushing the S&P 500 and Nasdaq indexes to record levels last week.
“The result so far has been far better than forecast. People and institutions are positive about the market now, even though we are nearing an all-time high,” said Mark Grant, chief strategist for global markets at B. Riley FBR in Fort Lauderdale, Florida.
The data for Monday is expected to show a slight increase in national factory activity, while a reading of the Labor Department’s non-agricultural wages and salaries data is due to be released on Friday.
At 8:36 a.m. CET, they rose 181 points or 0.54%, 20.25 points or 0.49% and 50 points or 0.36%.
Tesla (NASDAQ 🙂 Inc fell 0.7%. Industry insiders told Reuters that the electric vehicle maker under investigation in China for safety and customer service complaints is stepping up its engagement with mainland regulators and strengthening its government relations team.
Modern (NASDAQ 🙂 Inc was up 3.5% after the drug maker announced it would ship 34 million doses of its COVID-19 vaccine to the global COVAX program this year.
Estee Lauder Companies Inc (NYSE 🙂 was down 4.1% after missing analysts’ estimates for third-quarter sales. This was hurt by weak demand for premium makeup products from the cosmetics company as people continued to work from home.
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