Wall Street looks higher as banks and megacaps rise

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A street sign for Wall Street is seen in the financial district of New York, U.S., November 8, 2021. REUTERS/Brendan McDermid

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  • American Eagle tumbles on lower earnings forecast for the first half of 2022
  • Futures up: Dow 0.35%, S&P 0.33%, Nasdaq 0.20%

March 3 (Reuters) – U.S. stock indices were expected to open higher on Thursday, with all eyes on megacap growth stocks which led a rally in the previous session after Federal Reserve Chairman Jerome Powell, signaled a cautious tightening amid the Ukraine crisis.

Investors will continue to look for clues about the Fed’s policy stance as Powell’s congressional testimony enters its second day.

Futures were also boosted after oil prices fell from multi-year highs following rumors of a deal with Iran that would allow the country to export more oil. Read more

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Growth stocks and major banks rose slightly. Tesla Inc (TSLA.O), Amazon.com, Microsoft Corp (MSFT.O), Meta Platforms (FB.O), Apple Inc (AAPL.O) and owner Google-Alphabet Inc (GOOGL.O) rose by 0.4%. and 0.9%.

Citigroup (CN) underperformed, falling 0.6% after KBW downgraded the stock to “market performance”.

A Ukrainian official said the talks between Ukraine and Russia would start in a few hours. Meanwhile, Russian President Vladimir Putin has told his French counterpart Emmanuel Macron that the goals of the Russian operation in Ukraine – its demilitarization and neutral status – will be achieved in any case. Read more

“Things are a little quiet on a relative basis, not from a long-term perspective, but in terms of what’s been going on since Russia attacked Ukraine,” said Randy Frederick, managing director of trading and merchandise at Charles Schwab in Austin, Texas.

“I would say probably because it looks like Russia isn’t making a huge amount of progress right now that the Ukrainian resistance is a lot stronger than we expected and we also got some certainty on the politics of Jay Powell’s Fed yesterday.

U.S. stocks rallied sharply on Wednesday after Powell said he would back a quarter-point rate hike at the March 15-16 Fed meeting, allaying some fears of aggressive policy tightening. US central bank policy. Read more

He will testify before the Senate Banking Committee later today. A host of economic data is also expected, including the ISM non-manufacturing PMI at 10:00 a.m. ET.

As of 8:43 a.m. ET, Dow e-minis were up 119 points, or 0.35%, S&P 500 e-minis were up 14.5 points, or 0.33%, and e-minis Nasdaq 100 were up 28.25 points, or 0.2%.

Citigroup has upgraded US stocks to “overweight” as it sees demand for rate-sensitive growth stocks due to a sharp drop in bond yields following the Ukraine crisis. Read more

American Eagle Outfitters Inc (AEO.N) fell 4.8% after the clothing chain forecast lower profits for the first half of 2022 amid rising shipping costs and federal stimulus benefits are fading. Read more

Best Buy Co Inc (BBY.N) rose 5.1% after the consumer electronics retailer announced a 26% increase in quarterly dividend and plans to spend about $1.5 billion on buyouts. shares in 2023

The CBOE Volatility Index (.VIX) last traded at 30:31.

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Reporting by Devik Jain in Bengaluru; Editing by Sriraj Kalluvila and Saumyadeb Chakrabarty

Our standards: The Thomson Reuters Trust Principles.

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