• Fri. Sep 25th, 2020

Dimancherouge

Technology

Wall Street set for higher open as Oracle results beat estimates

(Reuters) – Wall Street’s main indexes were on track to open higher on Friday, after a pullback in the previous session, with Oracle’s solid quarterly results underscoring the resilience of tech-related companies during the coronavirus crisis.

FILE PHOTO: The Wall Street sign is pictured at the New York Stock exchange (NYSE) in the Manhattan borough of New York City, New York, U.S., March 9, 2020. REUTERS/Carlo Allegri/File Photo

The cloud services company ORCL.N added 4.5% in premarket trading after its earnings beat estimates and it signaled a recovery in client spending due to higher remote working-led demand.

Exercise bike maker Peloton Interactive Inc PTON.O surged 11.3% as it reported a forecast-beating quarterly revenue due to a surge in subscribers and increased demand for its fitness products during the pandemic.

The so-called “stay-at-home winners” — Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Microsoft Corp MSFT.O and Netflix Inc NFLX.O — rose about 1% each after selling in some of these mega-cap stocks brought Wall Street’s rally to a screeching halt last week.

The S&P 500 and the Dow were set for their sharpest weekly decline since June, while the Nasdaq was headed for its steepest weekly fall since March as concerns over the massive build-up in call options tied to tech names exacerbated the selloff.

“We are likely to see on-and-off pullback similar to what we have seen since early-June,” said Liz Ann Sonders, chief investment strategist at Charles Schwab.

“It doesn’t do much to ease some of the speculative froth we’re seeing, particularly in the options market by smaller traders.”

Still, many investors view the slump as a healthy consolidation after a stunning five-month rally in the S&P 500 that was powered by a narrow group of heavyweight tech names and scores of fiscal and monetary stimulus.

The Nasdaq is about 9% below its record closing high, while the S&P 500 is about 7% below its peak, both logged last week.

Economic indicators suggest a long and difficult recovery from the pandemic, especially in the labor market. Latest data showed U.S. consumer prices increased more than expected in August.

At 8:35 a.m. ET, Dow e-minis 1YMcv1 were up 80 points, or 0.29%. S&P 500 e-minis EScv1 were up 15.75 points, or 0.47% and Nasdaq 100 e-minis NQcv1 were up 48.5 points, or 0.43%.

Tesla TSLA.O gained 2.9% as two sources said the electric-car maker is planning to export Model 3 vehicles made in China to Asian and European markets.

Kroger Co KR.N gained 2.7% after the U.S. supermarket chain beat quarterly same-store sales estimates, helped by a surge in online grocery sales as customers cooked more at home during the COVID-19 pandemic.

(The

Reporting by Medha Singh in Bengaluru; editing by Uttaresh.V

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