Stocks

US STOCKS-Wall St set for higher open on encouraging China data, earnings

Headlines that say Stocks, Finance, Markets, Business and World.
Credit: Shutterstock photo

(For a live blog on the U.S. stock market, click LIVE/ ortype LIVE/ in a news window.)

* Netflix reverses early losses after Q1 results

* S&P 500 less than 1% from record high

* China's Q1 growth unexpectedly steadies

* Futures up: Dow 0.19%, S&P 0.29%, Nasdaq 0.53% (Adds comment, updates prices)

By Amy Caren Daniel

April 17 (Reuters) - Wall Street was set to open higher onWednesday, as upbeat economic data from China and a jump inQualcomm shares sparked gains in chipmakers, with sentiment alsolifted by largely positive earnings reports.

China's economy grew at a steady 6.4% pace in the firstquarter, defying expectations for a further slowdown, adding tooptimism that the economy may be starting to stabilize even asBeijing and Washington appear moving closer to a trade deal.

The data, along with semiconductor equipment maker ASML'sASML.AS forecast of faster growth due to demand from China,lifted semiconductor stocks in premarket trading.

Qualcomm IncQCOM.O surged 12.2% after the company won amajor victory in its legal dispute with Apple IncAAPL.O thatcalled for the iPhone to once again use Qualcomm modemchips.

Shares of Intel CorpINTC.O , Advanced Micro DevicesAMD.O and Nvidia CorpNVDA.O were up between 0.7% and 4.41%.

"We've had a tailwind from Chinese economic data, and ingeneral earnings reports have been mixed, but for the most partit was better-than-feared," said Art Hogan, chief marketstrategist at National Securities in New York.

"We've bounced up to a level where we are pretty fairlyvalued and we are going to need something significantly new likethe U.S.-China trade deal for a higher estimate in 2019."

At 8:49 a.m. ET, Dow e-minis 1YMc1 were up 50 points, or0.19%. S&P 500 e-minis ESc1 were up 8.5 points, or 0.29% andNasdaq 100 e-minis NQc1 were up 40.75 points, or 0.53%.

If current premarket gains hold, the S&P 500 will open 0.9%below the record high hit in late September. Stocks have surgedthis year on growing hopes of a trade deal with China andbetter-than-expected earnings reports.

With earnings season in full swing, analysts now expectfirst-quarter S&P 500 profits to have dropped 1.8% year-on-year,according to Refinitiv data. While a solid improvement overrecent estimates, it would still mark the first earningscontraction since 2016.

Of the 42 S&P 500 companies that have posted so far, 81%have beaten consensus, compared with the 65% average beat rategoing back to 1994.

Netflix Inc shares NFLX.O reversed course to gain 3.4%.The video streaming service provider gave a weak forecast butits quarterly results beat estimates.

International Business Machines CorpIBM.N fell 2.7% afterreporting a bigger-than-expected drop in quarterly revenue.

PepsiCo IncPEP.O rose 2.1% after quarterly results beatWall Street estimates on higher demand for its snacks andlow-sugar sodas.

United Continental Holdings IncUAL.O rose 3.2% afterreporting a better-than-expected jump in quarterly profit andlifted other airline stocks.

Morgan Stanley shares MS.N rose 1.7% after the lenderreported quarterly profit above expectations, wrapping upearnings for big U.S. banks.

At 2 p.m. ET, the Federal Reserve issues its so-called BeigeBook, a compendium of anecdotes on the health of the economy,drawn from the central bank's sources across the nation. (Reporting by Amy Caren Daniel and Sruthi Shankar in Bengaluru;Editing by Sriraj Kalluvila) ((Amy.CarenDaniel@thomsonreuters.com ; within U.S.+1-646-223-8780; outside U.S. +91 80 6749 9250 ; ReutersMessaging: Amy.CarenDaniel.thomsonreuters.com@reuters.net;))


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

AAPL

Other Topics

World Markets Politics

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More