St. set to open slightly lower, Amazon soars
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[April 29, 2016]
By Tanya Agrawal
(Reuters) - Wall Street was set to open
slightly lower on Friday as investors assess a raft of economic data and
take stock of the earnings season, even as a jump in oil prices helped
temper some losses.
Oil hit new highs earlier in the day and was poised for its biggest
monthly gain in seven years as a weak dollar and falling U.S.
production soothed concerns about an excess of physical oil. [O/R]
The dollar index was down 0.4 percent at $93.38, its lowest level
Stock markets around the world were in the red - with the yen
rallying to an 18-month high, signaling a broader risk aversion
among investors - a day after the Bank of Japan's call to cap
monetary stimulus rattled investors.
"I think we are looking at a cautious trading day as the poor
earnings season finally catches up, though oil could help smoothen
some of the declines," said Peter Cardillo, chief market economist
at First Standard Financial in New York.
First-quarter earnings from S&P 500 components are expected to have
fallen 6.1 percent from a year earlier, according to Thomson Reuters
I/B/E/S. Of the 273 companies that have reported, 57 percent
reported revenue above analyst expectations, compared with the
long-term average 60 percent.
U.S. inflation barely rose in March as consumer spending remained
tepid, making it less likely that the Federal Reserve will be able
to hike interest rates twice this year.
The Commerce Department said the personal consumption expenditures
price index, excluding the volatile food and energy components,
edged up 0.1 percent last month after an upwardly revised 0.2
percent increase in February.
Economists polled by Reuters expect two increases this year but
futures prices show traders do not expect rates to rise until late
2016, according to CME Group's FedWatch.
S&P 500 e-minis were down 5.5 points, or 0.27 percent, with 219,920
contracts traded at 8:39 a.m. ET. Nasdaq 100 e-minis were down
18.5 points, or 0.42 percent, on volume of 34,309 contracts. Dow
e-minis were down 45 points, or 0.25 percent, with 26,632
contracts changing hands.
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Shares of Amazon jumped 12.3 percent to $676.24 in premarket
trading after the company's quarterly results blew past analysts'
Oil majors Chevron was down 1.9 percent at $100.26, while Exxon was
up 0.2 percent at $88.25, after reporting results.
LinkedIn was up 8.4 percent at $133.35 after the operator of the
online network for professionals raised its 2016 revenue and profit
Gilead Sciences fell 4.6 percent to $92.48 after reporting an 18
percent fall in first-quarter net profit.
TiVo rose 6.2 percent to $10 after digital entertainment guide
provider Rovi said it will buy the company in a deal valued at about
$1.1 billion. Rovi was up 8.8 percent at $18.88.
(Additional reporting by Aastha Agnihotri in Bengaluru; Editing by
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