May 10, 2016 / 12:32 PM / 2 years ago

US STOCKS-Wall St set to open higher as oil prices rise

* World stocks also higher on earnings, Greek talks, Japan

* Gap drops in premarket trading after sales fall

* SolarCity slumps after slashing its forecast

* Futures up: Dow 68 pts, S&P 8 pts, Nasdaq 12 pts (Adds details, comment, updates prices)

By Tanya Agrawal

May 10 (Reuters) - Wall Street was poised to open higher on Tuesday, tracking global equities, as investors’ appetite for risk increased and as oil prices rose.

Oil was up about 1 percent, driven by supply disruptions in Canada and elsewhere that have knocked out 2.5 million barrels of daily production and overshadowed fears of oversupply.

World stock markets also rose, helped by solid corporate earnings in Europe, progress on Greek debt talks, and a new pledge by Japan that it was prepared to weaken its currency.

The S&P 500, which has risen about 15 percent since its February lows, has slowed its rally in the last two weeks due to underwhelming quarterly earnings and mixed U.S. economic data.

U.S. stocks broke a three-day losing streak to close higher on Friday after a disappointing U.S. jobs report suggested the Federal Reserve would raise rates just once this year.

Wall Street also ended mostly higher on Monday after a rise in healthcare companies offset the decline in energy and materials shares.

“The market has been resilient and has offered the opportunity for the buyers of the pullback to capitalize on it and that’s why we’re seeing a move back into equities,” said Andre Bakhos, managing director at Janlyn Capital LLC in Bernardsville, New Jersey.

S&P 500 e-minis were up 7.75 points, or 0.38 percent, with 255,699 contracts traded at 8:16 a.m. ET (1216 GMT).

Nasdaq 100 e-minis were up 12.25 points, or 0.28 percent, on volume of 34,250 contracts.

Dow e-minis were up 68 points, or 0.39 percent, with 36,559 contracts changing hands.

While commentary from various Fed officials in the past few weeks has hinted at two rate hikes this year, traders are pricing in only one increase at the end of the year.

With first-quarter reports almost all in, data shows earnings at S&P 500 companies, on average, fell 5.5 percent and revenue 1.9 percent, according to Thomson Reuters I/B/E/S.

Investors will be watching out for wholesale inventories data at 10 a.m. ET, keen to see if inventories, which fell at their fastest pace in nearly three years in February, rebounded 0.1 percent, as analysts expect, in March.

Gap shares fell 11.5 percent to $19.30 in premarket trading after the retailer reported a decline in sales for the fifth straight quarter.

SolarCity was down 19.3 percent at $18.17 after the solar panel maker posted a bigger-than-expected quarterly loss and cut its forecast.

Dean Foods was up 4.3 percent at $19 after the company’s first-quarter profit beat expectations.

Dow component Disney and videogame publisher Electronic Arts are scheduled to report after the closing bell. (Reporting by Tanya Agrawal in Bengaluru; Editing by Savio D’Souza)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below