US STOCKS-Wall St set to open higher as beaten down tech stocks rebound


Reuters

* Fed's Dudley says tight labor market should push inflation
up
    * Retail stocks higher after being roiled last week
    * Futures up: Dow 71 pts, S&P 7.25 pts, Nasdaq 43.5 pts

 (Adds details, comment, updates prices)
    By Tanya AgrawalJune 19 (Reuters) - U.S. stocks looked set to open higher on
Monday as investors snapped up beaten down technology and retail
stocks.
    The S&P technology sector <.SPLRCT> is coming off its second
straight weekly decline, triggered by fears over stretched
valuations and investors moving money to other sectors. Tech
stocks have led the S&P 500's 8.7 percent rally this year.
    Leading the rebound, Apple <AAPL.O>, Microsoft <MSFT.O> and
Alphabet <GOOGL.O> were all up about 1 percent in premarket
trading.
    Retail stocks were battered on Friday after Amazon.com's
<AMZN.O> $13.7 billion deal to buy upscale grocer Whole Foods
<WFM.N>. [nL3N1JD3Z4]
    The deal by Amazon, a proven retail disruptor, marked a
major step by the internet retailer into the brick-and-mortar
retail sector.
    Amazon was up 0.8 percent, while Wal-Mart <WMT.N>, Target
<TGT.N> and Kroger <KR.N> gained between 0.8 percent and 1.8
percent on Monday.
    Dow e-minis <1YMc1> were up 71 points, or 0.33 percent, with
25,503 contracts changing hands at 8:42 a.m. ET (1242 GMT). S&P
500 e-minis <ESc1> were up 7.25 points, or 0.3 percent, with
138,274 contracts traded. Nasdaq 100 e-minis <NQc1> were up 43.5
points, or 0.77 percent, on volume of 38,221 contracts.
    New York Fed President William Dudley, a close ally of Fed
Chair Janet Yellen, said U.S. inflation was a bit low but should
rise alongside wages as the labor market continues to improve,
allowing the Federal Reserve to continue gradually tightening
U.S. monetary policy. [nN9N1GG012]
    Yellen's confidence as her team raised interest rates for
the third time in six months last week surprised investors who
had expected more caution about the economy following a batch of
weak U.S. economic data.
    "The absence of macro data today shifts the focus back to
the Fed as two Fed members Dudley and Evans speak today. We
suspect, an upholding of least one more rate hike will likely be
supported," said aid Peter Cardillo, chief market economist at
First Standard Financial in New York.
    Last month, the U.S. economy added 138,000 jobs, well below
the expected gain of 185,000, while other data showed a fall in
retail sales and inflation below the Fed's target of 2 percent.
    European stocks were headed for their biggest rise in two
months, helped by a meaty parliamentary majority for
pro-business French President Emmanuel Macron.
    Oil prices edged higher, after coming under pressure over
the past month from rising production. [O/R]
    Clovis Oncology <CLVS.O> soared 47 percent to $87.90 after
the biotechnology company's ovarian cancer drug was set for a
label expansion. [nL3N1JG2TI]

 (Reporting by Tanya Agrawal; Editing by Saumyadeb Chakrabarty)
 ((tanya.agrawal@thomsonreuters.com; within U.S. +1 646 223
8780; outside U.S. +91 80 6749 1130; Reuters Messaging:
tanya.agrawal.thomsonreuters.com@reuters.net))

Keywords: USA STOCKS/ (UPDATE 1)



This article appears in: World Markets , US Markets , Stocks
Referenced Symbols: AAPL , AMZN , CLVS , DJI , GOOGL


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