Dow Today – US STOCKS-Wall Street set to open higher after upbeat earnings
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* Travelers up after reporting record quarterly profit
* American Airlines rises as loss narrows, United falls
* Netflix to report quarterly results after market close
* Futures up: Dow 0.37%, S&P 0.44%, Nasdaq 0.88% (Adds comments, updates prices throughout)
Jan 20 (Reuters) – U.S. stock futures rose on Thursday as upbeat results from American Airlines and Travelers kept the positive momentum going for the fourth-quarter earnings season, a day after the tech-heavy Nasdaq index plunged into correction territory.
The Nasdaq has had a rough two months since hitting a record peak in November, with investors dumping tech stocks on expectations that the Federal Reserve would aggressively raise interest rates to tame inflation.
“We’ve done a lot of damage in a very short period of time and that tends to cause a reflexive bounce. It won’t take much for bargain hunters to come out and turn this thing around a little bit,” said Art Hogan, chief market strategist at National Securities in New York.
Netflix, which is set to kick off the earnings season for big growth companies later in the day, advanced 0.9%.
Wall Street is watching Netflix’s results to see whether companies have started to pull in enough new customers to justify big spending on online programming in 2022.
The U.S. Senate Judiciary Committee is also set to decide on whether the full Senate should vote on two bills aimed at reining in tech giants. The bills would bar tech platforms like Amazon from giving preference to their own businesses on their websites and big app stores like Apple from requiring app providers to use their payment system.
The Fed’s policy meeting next week will be eyed for clarity on the central bank’s plan to control inflation, after data earlier this month showed U.S. consumer prices surged to the highest level in four decades.
A report on Thursday showed the number of Americans filing new claims for unemployment benefits unexpectedly rose last week, likely as a wave of COVID-19 cases disrupted business activity.
At 8:37 a.m. ET, Dow e-minis were up 128 points, or 0.37%, S&P 500 e-minis were up 19.75 points, or 0.44%, and Nasdaq 100 e-minis were up 132.5 points, or 0.88%.
Insurance industry bellwether Travelers Companies gained 4.3% after reporting a record quarterly profit as higher returns from its investments cushioned the hit from a rise in catastrophe-related claims.
“The earnings season is going to be a positive catalyst, especially since we’re coming in so significantly off the all-time highs. The setup for earnings surprises is likely also a set up for markets to actually do a whole lot better,” National Securities’ Hogan said.
American Airlines gained 1.8% after reporting a smaller fourth-quarter loss, boosted by strong travel demand during the holiday season, while United Airlines declined 0.9% after cutting its capacity forecast for 2022.
Baker Hughes Co added 1.2% as surging crude prices boosted demand for its oilfield service equipment, helping it post an adjusted quarterly profit compared with a year-ago loss.
Reporting by Bansari Mayur Kamdar and Shreyashi Sanyal in Bengaluru; Editing by Aditya Soni