Wall St set to boost profits, mergers and acquisitions applaud amid Delta worries
- Dupont and Under Armor leap to solid earnings
- Translate organic pushes for sale to Sanofi into $ 3.2 billion deal
- Banks follow bond yields higher
- Focus on service sector data, employment report this week
- Up futures: Dow 0.27%, S&P 0.22%, Nasdaq 0.14%
Aug 3 (Reuters) – Wall Street was expected to rise on Tuesday as a bullish corporate earnings season and a pickup in global trading activity boosted demand for risky stocks, although gains were limited by concerns about an increase in the Delta variant of the coronavirus.
Shares of Dupont (DD.N) rose 2.2% in pre-market after the industrial materials maker raised its guidance for the year for the second time. Read more
Stronger-than-expected earnings reports pushed up Corporate America’s already high second-quarter earnings guidance, with earnings estimated at around 90% compared to guidance of 65.4% in early July, according to IBES data from Refinitiv . Read more
Still, the three major U.S. stock indexes slipped from record highs as investors turned profits amid high stock valuations and concerns about slowing economic growth and growing cases of the Delta variant grew. hit the feeling.
“Investors are unwilling to sell at current levels, but are also unwilling to commit to new capital due to the increase in COVID-19 cases and a possible change in taxes, this which could lead the market to trade quite tightly, ”said Rick Meckler, partner at Cherry Lane Investments in New Vernon, New Jersey.
The intensification of regulatory repression in China has also created nervousness in the global tech sector. Chinese firm Tencent Holdings Ltd (0700.HK) lost as much as 10% in Asia after Chinese state media called online gambling “spiritual opium”. Read more
Shares of U.S.-listed game companies including Activision Blizzard Inc (ATVI.O) and Take-Two Interactive Software Inc (TTWO.O) edged down at 8:23 a.m. ET.
Dow e-minis increased 95 points, or 0.27%, S&P 500 e-minis increased 9.75 points, or 0.22%, and Nasdaq 100 e-minis increased 20 , 75 points, or 0.14%.
Bond yields stabilized after weaker-than-expected manufacturing data from the previous session sent them to their lowest since July 20. Shares of major US banks, which typically track bond yields, also edged up in early trades.
The focus will be on factory orders for June on Tuesday, while later in the week traders will look to data on the U.S. service sector and the monthly jobs report for July.
In the context of mergers and acquisitions, Translate Bio (TBIO.O) jumped 29.4% after the French Sanofi (SASY.PA) agreed to buy the American biotech company for an amount of 3.2 billion of dollars.
Industrial company Cummins Inc (CMI.N) gained 1.3% as it said it would explore options for its filters, coolants and chemicals manufacturing unit. Read more
Under Armor Inc jumped 6.1% after raising its annual revenue forecast. Read more
Drugmaker Eli Lilly and Co (LLY.N), on the other hand, slipped 1.9% as it announced a 2% drop in quarterly profits. Read more
Reporting by Sagarika Jaisinghani and Shashank Nayar in Bengaluru; Editing by Arun Koyyur
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