Wall St set for higher open after Walmart, Home Depot results beat

People are seen on Wall St. outside the New York Stock Exchange (NYSE) in New York City, U.S., March 19, 2021. REUTERS/Brendan McDermid

Wall Street’s main indexes were set to open higher on Tuesday after better-than-expected results from Walmart and Home Depot signaled strength in consumer demand against the backdrop of rising prices.

Walmart, the world’s biggest retailer (WMT.N), gained 3.5% in premarket trading after raising its full-year earnings forecast as additional stimulus checks increased spending for apparel and electronics. read more

Top U.S. home improvement retailer Home Depot’s (HD.N) shares rose 2.2% after beating quarterly same-store sales estimates, allaying concerns that the company would see pandemic-fueled demand easing as vaccinations gather steam. read more

Macy’s climbed 4% after the department store operator raised its forecast for annual sales and earnings. Rivals Nordstrom (JWN.N) and Kohl’s Corp (KSS.N) added about 2.6% and 2.1%. read more

“Walmart and Home depot seem to have benefited out of higher consumer spending and as the lockdowns ease and as we return to normality, we expect spending to increase in the retail and real estate sectors,” said Sean O’Hara, president of Pacer ETFs in Pennsylvania.

“The market still remains fearful of runaway inflation and the narrative is driven by the game of catch-up from the supply chain side while fundamental earnings and GDP performance are not back at pre-pandemic levels.”

Wall Street’s main indexes fell on Monday on fears that an overheating economy could prompt the Federal Reserve to rein in its monetary support following a spike in volatility last week after strong inflation readings.

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The benchmark S&P 500 is about 2% from its all-time high, while the tech-heavy Nasdaq is about 6% from its April 29 record high.

Fund managers trimmed their overweight positions on technology stocks to a three-year low as inflation worries left growth stocks vulnerable to a pullback, and turned overweight on UK stocks for the first time in sever years, a survey from Bank of America showed. read more

Minutes from the Fed’s April policy meeting will be parsed on Wednesday for the central bank’s view of the economy.

At 8:15 a.m. ET, Dow e-minis
were up 67 points, or 0.2%, S&P 500 e-minis
were up 8.75 points, or 0.21%, and Nasdaq 100 e-minis
were up 83.5 points, or 0.63%.

Tesla Inc (TSLA.O) dropped 1.5% after the family office run by “Big Short” investor Michael Burry disclosed a short position worth more than half a billion against the electric-car maker. read more

Wells Fargo & Co (WFC.N) dipped 0.4% after Berkshire Hathaway Inc (BRKa.N) has sold nearly all of its holdings in the lender, abandoning a more than 31-year-old investment. read more

China’s Baidu Inc gained 2.9% after reporting a 25% rise in quarterly revenue, powered by advertising on its core search and video-streaming platforms. read more

Shares of EV charging equipment makers Chargepoint Holdings (CHPT.N) and Blink Charging Co (BLNK.O) gained 1.2% and 2.4% as President Joe Biden was set to make the case for his $174 billion electric vehicle plan on Tuesday. read more

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Source: Reuters

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