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The
three major indexes were poised for a higher open after a
four-session losing streak for the Dow and the Nasdaq.
The S&P 500 is set to bounce after ending the previous session
more than 10% below its January peak, confirming a correction.
After Moscow deployed troops in separatist regions of eastern
Ukraine, the United States, the European Union, Britain,
Australia, Canada and Japan responded with plans to target banks
and elites, while Germany froze a major gas pipeline project
from Russia.
"It was not as harsh as they had been sort of indicating. It
almost seemed like more of a warning than anything else because
they do not seem to go far enough," said Robert Pavlik, senior
portfolio manager at Dakota Wealth in Fairfield, Connecticut.
Western powers have warned of scaling up sanctions if Russia
launches an all-out invasion of its neighbor in one of the worst
security crises in Europe in decades.
"Investors are looking at the S&P 500 entering the correction
territory and using that as an opportunity to step up and try to
find some bargains," Pavlik said.
Mega-cap growth stocks Apple Inc, Meta Platforms, Microsoft
Corp, Amazon.com Inc and Google-owner Alphabet Inc added between
0.7% and 1.1% in premarket trading.
Tesla Inc gained 1.9% as the electric-car maker plans to expand
parts production at its Shanghai factory to meet growing demand
for exports.
Shares of big banks rose with Wells Fargo and Morgan Stanley up
more than 1% each.
At 7:54 a.m. ET, Dow e-minis were up 225 points, or 0.67%, S&P
500 e-minis were up 34 points, or 0.79%, and Nasdaq 100 e-minis
were up 164.75 points, or 1.19%.
U.S. stocks have had a turbulent start to 2022 as worsening
geopolitical tensions hurt investor sentiment already dented by
worries about aggressive policy tightening by the Federal
Reserve to combat inflation.
Diamondback Energy Inc rose 2.6% after the U.S. shale oil
producer reported upbeat fourth-quarter profit and boosted its
dividend as fuel prices hit multi-year highs on stronger energy
demand.
Mosaic Co fell 5.4% after the fertilizer maker posted downbeat
quarterly results.
Lowe's Cos Inc added 2.6% after the home improvement chain
raised its full-year sales and profit forecasts.
(Reporting by Susan Mathew and Devik Jain in Bengaluru; Editing
by Arun Koyyur)
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