US STOCKS-Wall St set to rebound after volatile week; takeover talks boost VMware
23/05/2022 14:01
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* Broadcom shares decline on potential VMware buyout
* JPMorgan rises on upbeat profit forecast
* Futures up: Dow 0.94%, S&P 0.84%, Nasdaq 0.48%
(Adds comment, details; updates prices)
By Anisha Sircar and Devik Jain
May 23 (Reuters) - Wall Street's main indexes were set for a
higher open on Monday, helped by a bounce back in growth and
bank stocks, after the benchmark S&P 500 hovered near a grim
market milestone at the end of last week.
Investors will keep a close eye on the slew of economic data
expected this week that could shed light on the health of the
U.S. economy against the backdrop of a steep sell-off in stocks
this year.
U.S. stock indexes deepened year-to-date losses last week as
dismal forecasts from Walmart Inc WMT.N and other retailers
added to worries about surging inflation and its impact on
consumers and economic growth.
The benchmark S&P 500 .SPX fell over 20% from its Jan. 3
record closing high at one point on Friday, pushing it to the
brink of confirming a bear market. The index is now down 18.7%
from its all-time closing high.
Cloud service provider VMWare Inc VMW.N surged 21.4% in
premarket trading after reports over the weekend said chipmaker
Broadcom Inc AVGO.O was in talks to acquire the company.
Broadcom fell 5.1%. urn:newsml:reuters.com:*:nL2N2XE0L5
"It doesn't surprise me and that's what you will start to
see when you are bouncing along the bottom, it is an indication
that equities are becoming more attractive," said Christopher
Grisanti, chief equity strategist at MAI Capital Management.
Beaten-down megacap growth stocks including Apple Inc
AAPL.O , Microsoft Corp MSFT.O , Alphabet Inc GOOGL.O , Meta
Platforms FB.O and Amazon.com AMZN.O gained between 0.4% and
0.7%.
JPMorgan Chase & Co JPM.N rose 1.2% to lead gains among
the big banks after the biggest U.S. lender by assets lifted its
2022 outlook for net interest income. urn:newsml:reuters.com:*:nL3N2XF1ZF
Readings on the second estimate of first-quarter U.S. GDP,
PCE price index and durable goods data for April are due this
week, likely providing clues on how the world's largest economy
is faring amid decades-high inflation.
"The more folks think there is going to be a recession, the
less they are going to worry about inflation. If the economy is
slowing down ... the Federal Reserve won't have to raise
interest rates quite as high as before," Grisanti said.
The Federal Reserve's May meeting minutes, due on Wednesday,
will be closely parsed for signs on how aggressively the U.S.
central bank is planning to raise interest rates. Money markets
are pricing in 50-basis point rate hikes by the Fed in June and
July. FEDWATCH .
At 8:32 a.m. ET, Dow e-minis 1YMcv1 were up 294 points, or
0.94%, S&P 500 e-minis EScv1 were up 32.75 points, or 0.84%,
and Nasdaq 100 e-minis NQcv1 were up 57.25 points, or 0.48%.
, U.S. President Joe Biden said on Monday he was weighing
cutting tariffs on Chinese goods, while increasing calls on OPEC
to raise oil production as he grappled with a politically
damaging wave of inflation. urn:newsml:reuters.com:*:nT9N2VL001
Shares of smallpox vaccine and drugmakers including SIGA
Technologies SIGA.O and GeoVax Labs GOVX.O jumped between 7%
and 40% after the United States identified its third suspected
case of viral infection monkeypox. urn:newsml:reuters.com:*:nL3N2XF273
The World Health Organization expects to identify more cases
of the infection as it expands surveillance in countries where
the disease is not typically found. urn:newsml:reuters.com:*:nL2N2XD0EN
(Reporting by Devik Jain and Anisha Sircar in Bengaluru;
Editing by Saumyadeb Chakrabarty and Shounak Dasgupta)
((Devik.Jain@thomsonreuters.com))