Wall Street near highs after upbeat earnings run
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[November 06, 2019] By
(Reuters) - Wall Street was on course to
open close to record highs on Wednesday as investors digested a
corporate earnings season that has seen the bulk of U.S.-listed firms
best analysts' expectations, funding another round of stock market
Eyes remained glued to any signs of progress in trade talks between
Washington and Beijing with latest reports saying the two sides were
still working out the details of a "phase one" trade deal which could be
signed later this month.
Latest data has also improved sentiment, with the ISM services index
easing concerns that a slowdown in the manufacturing sector was
spreading to other parts of the economy.
Of the 383 S&P 500 companies to have reported third-quarter results so
far, nearly three quarters have beaten profit expectations, according to
IBES data from Refinitiv.
To some extent, however, those figures reflect the significantly lowered
expectations of analysts, who had forecast the first earnings drop since
late 2016 and many players say they have doubts about the market's
ability to rally much further this year.
At 07:29 a.m. ET, Dow e-minis <1YMcv1> were up just 27 points, or 0.1%.
S&P 500 e-minis <EScv1> were up 2.75 points, or 0.09% and Nasdaq 100
e-minis <NQcv1> were up 7.25 points, or 0.09%.
Humana Inc <HUM.N> rose 3.9% as the health insurer reported quarterly
profit that beat estimates on higher sales of its government-backed
Medicare Advantage health plans, and raised its full-year earnings
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Traders work on the floor at the New York Stock Exchange (NYSE) in
New York, U.S., November 4, 2019. REUTERS/Brendan McDermid
CVS Health Corp <CVS.N> gained 2.6% in premarket trading after the pharmacy
chain posted a better-than-expected quarterly profit, partly boosted by its
pharmacy benefit management unit.
But shares of Match Group Inc <MTCH.O> fell 10.4% after the Tinder-owner
forecast fourth-quarter revenue below estimates in the face of stiff competition
from rival online dating services. Its parent firm, IAC/InterActiveCorp <IAC.O>,
Shares of DaVita Inc <DVA.N> rose 7.3% after the company reported
better-than-expected third-quarter results.
HP Inc <HPQ.N> jumped 8.4% after a report that Xerox Holdings Corp <XRX.N> was
considering an offer for the personal computer maker at a premium to its market
value of about $27 billion. Xerox shares were down 3.1%.
(Reporting by Arjun Panchadar in Bengaluru; editing by Patrick Graham)
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