S&P, Nasdaq futures scale new heights on earnings boost
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[November 04, 2021] By
Devik Jain
(Reuters) - The S&P 500 and Nasdaq futures
were at record highs on Thursday, propped up by a slew of stellar
earnings reports and as investors shrugged off the Federal Reserve's
first steps to begin paring its pandemic-era support.
Shares of Qualcomm Inc jumped 8.1% in pre-market trade after the
chipmaker forecast better-than-expected profit and revenue for its
current quarter on soaring demand for chips used in phones, cars and
other internet-connected devices.
A cheery third quarter earnings season coupled with upbeat commentary
about future growth from corporate America has helped Wall Street
largely dismiss concerns around rising prices, supply chain snags and a
mixed macro-economic picture.
A widely expected move by the Fed on announcing its plan to start
tapering its monthly bond purchases beginning this month, while sticking
to the belief about the "transitory" nature of inflation and waiting for
more job growth - before raising interest rates, also helped sentiment.
The S&P 500 and Nasdaq notched record all-time closes for their fifth
straight sessions on Wednesday, while the Dow Jones Industrial Average
posted a record close for the fourth session in a row.
Data due at 08:30 a.m. ET is expected to show the number of Americans
filing new claims for unemployment benefits fell to a fresh 19-month low
last week, suggesting the economy was regaining momentum. It will be
followed by a more comprehensive nonfarm payrolls report on Friday.
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Traders work on the
floor of the New York Stock Exchange (NYSE) in New York City, U.S.,
October 27, 2021. REUTERS/Brendan McDermid
"The risks are now skewed towards the (payrolls data) finally aligning with
signals elsewhere in the U.S. economy, after a few months of disappointments,"
said Jeffrey Halley, senior market analyst, at OANDA.
"A number north of 500K could cause equity markets to reconsider ignoring the
implications of the Fed taper. Similarly, a low print will keep the
lower-for-longer monetary party in equities going well into the night."
At 6:50 a.m. ET, Dow e-minis were down 12 points, or 0.03%, S&P 500 e-minis were
up 5.75 points, or 0.12%, and Nasdaq 100 e-minis were up 70.5 points, or 0.44%.
Tesla Inc added 1.9% and was set for a record open, while other mega-cap
technology titans Microsoft Corp, Google-owner Alphabet Inc, Amazon.com and Meta
Platforms also edged higher.
Oil firms including Exxon Mobil and Chevron Corp rose 0.9% and 0.5%,
respectively, tracking crude prices. [O/R]
Meanwhile, U.S. Representative Rick Larsen said on Wednesday his fellow House
Democrats could complete votes on President Joe Biden's social spending and
infrastructure bills as early as midday on Friday.
(Reporting by Devik Jain in Bengaluru; Editing by Bernard Orr)
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