Futures climb as technology and growth stocks rebound
NEW YORK - May 17 (Reuters) - U.S. stock index futures jumped on Tuesday, as strong earnings from Home Depot and United Airlines added to an upbeat global mood driven by hopes of easing crackdown on tech firms and COVID-19 in China.
Big technology and growth companies led the rebound in premarket trading, with Microsoft Corp (MSFT.O), Apple Inc (AAPL.O), Nvidia Corp (NVDA.O) and Tesla Inc (TSLA.O) up between 1.8% and 3.4%.
Home Depot Inc (HD.N) added 3.7% after it raised its full-year sales forecast as demand for home improvement tools and building materials holds up. read more
United Airlines Holdings Inc (UAL.O) rose 4.7% after the carrier raised its current-quarter revenue forecast, underscoring a boom in travel demand. read more
However, Dow component Walmart Inc (WMT.N) fell 4% after the retail giant cut its annual profit forecast, signaling a bigger hit to margins from surging costs. read more
U.S. retail sales data for April is due at 08:30 a.m. ET.
In Europe and Asia, shares jumped as Shanghai achieved the long-awaited milestone of three straight days with no new COVID-19 cases outside quarantine zones, raising hopes that restrictions might be eased. read more
Meanwhile, U.S.-listed shares of Chinese firms rose as a meeting between Chinese Vice-Premier Liu He and tech executives, currently underway, lifted expectations that Beijing's tech sector regulatory crackdown might ease. read more
A positive first-quarter earnings season has been overshadowed by worries about the Ukraine war, soaring inflation, COVID-19 lockdown in China and aggressive policy tightening by central banks.
The S&P 500 (.SPX) has declined 3% and the Nasdaq (.IXIC) 5.5% so far in May, due to losses in growth stocks.
A slew of Federal Reserve policymakers, including Chair Jerome Powell, are scheduled to speak later in the day and their comments would be parsed for clues on the path of future interest rate hikes.
Traders now see a nearly 84% probability of a 50-basis point rate hike in June.
At 06:50 a.m. ET, Dow e-minis were up 469 points, or 1.46%, S&P 500 e-minis were up 68 points, or 1.7%, and Nasdaq 100 e-minis were up 251 points, or 2.05%.
Among other stocks, Advanced Micro Devices (AMD.O) gained 4% after Piper Sandler upgraded the semiconductor designer's stock to "overweight".
Citigroup (C.N) jumped 5.3% after Warren Buffett's Berkshire Hathaway (BRKa.N) disclosed a nearly $3 billion investment in the U.S. lender.
Take-Two Interactive Software (TTWO.O) gained 7.4% after the Grand Theft Auto" publisher posted upbeat fourth-quarter profit. read more
