November 10, 2016 / 2:07 PM / 2 years ago

US STOCKS-Wall St set to open higher as investors cheer Trump win

* Dow futures hit record intraday high

* Drug stocks move higher on Trump victory

* Dollar hits more than two-week high; gold flat

* Futures up: Dow 106 pts, S&P 11.75 pts, Nasdaq 30.5 pts (Adds details, comments, updates prices)

By Yashaswini Swamynathan

Nov 10 (Reuters) - U.S. stocks were set to open higher on Thursday, with the Dow likely to hit a record intraday high, as investors bet that President-elect Donald Trump would lead a shift away from austerity policies.

Investors are seeing Trump’s policies such as tax cuts, deregulation of banks and higher defense and infrastructure spending as being more business-friendly than Democrat Hillary Clinton’s position of maintaining status quo.

Wall Street and stock markets across the globe staged an abrupt recovery on Wednesday, with the Dow Jones industrial average closing just 0.4 percent shy of its record intraday high.

“The markets are adjusting to a new reality and are giving Trump the benefit of doubt,” said Adam Sarhan, chief executive officer of Sarhan Capital.

“He does have some problems with immigration and with social issues, but his economic policies, at least in the short-term, are perceived to be stimulative and net good for the economy and that’s why stocks are rallying.”

The three major index futures are on track for their fourth straight day of gains - the longest streak since August. Dow futures also hit a record intraday high.

The dollar jumped to a more than two-week high of 98.92, while gold turned flat as investors returned to riskier assets such as stocks.

The Mexican peso continued its downward momentum against the dollar as Trump’s policies are considered deeply negative for the country.

Dow e-minis were up 106 points, or 0.57 percent, at 8:29 a.m. ET (1229 GMT), with 71,783 contracts changing hands.

S&P 500 e-minis were up 11.75 points, or 0.54 percent, with 412,225 contracts traded.

Nasdaq 100 e-minis were up 30.5 points, or 0.63 percent, on volume of 63,051 contracts.

As investors decipher what a Trump presidency would mean to the financial markets, they will also keep an eye for the last few corporate quarterly earnings reports, including those from Walt Disney and Nordstrom.

Shares of drug stocks such as Amgen Celgene and Gilead rose on Trump’s victory and after California voters turned down a ballot initiative aimed at reining in rising prices for prescription drugs.

Tech heavyweights Apple, Facebook, Microsoft and Alphabet were in positive territory premarket. The stocks were mainly responsible for the decline in the technology index on Wednesday.

Macy’s rose 4.35 percent to $40.05 after the department store operator reported third-quarter results and announced a partnership to monetize some of its real-estate assets.

Rival Kohl’s soared 7.7 percent to $49.20 after it reported a 21.7 percent rise in quarterly profit. (Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Saumyadeb Chakrabarty)

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