logo
Plus   Neg
Share
Email

Wall Street Poised To Open Positive

wallstreet-may16-lt.jpg

Jobless Claims, and Housing Starts Data for April are the major highlights on Thursday. Walmart recorded a surge in earnings.

Earlier signs from the U.S. Futures Index suggest that Wall Street might open positive.

Asian shares finished mostly positive, while European shares are trading up.

U.S. - China Trade hostility is closely watched by investors, especially in view of the new restriction on Huawei products.

As of 7.50 am ET, the Dow futures were adding 60 points, the S&P 500 futures were up 7.50 points and the Nasdaq 100 futures were gaining 14.50 points.

The U.S. major averages ended the session on Thursday firmly in positive territory. The Dow rose 115.97 points or 0.5 percent to 25,648.02, the Nasdaq jumped 87.65 points or 1.1 percent to 7,822.15 and the S&P 500 climbed 16.55 points or 0.6 percent to 2,850.96.

On the economic front, the Housing Starts data for April will be released at 8.30 am ET. The consensus is for an increase of 1.200 million, while it was up 1.139 million in the prior month.

The Labor Department's Jobless Claims for the week will be issued at 8.30 am ET. The economists are looking for consensus of 219K while it was 228K in the previous week.

The Philadelphia Fed Business Outlook Survey report for May will be published at 8.30 am ET. The consensus is for 9.3, up from 8.5 in the previous month.

The Energy Information Administration or EIA's Natural Gas Report for the week will be published at 10.30 am ET. In the prior week, the change was up 85 bcf.

Ten-year Treasury Note auction will be held at 11.00 am ET.

Minneapolis Federal Reserve Bank President Neel Kashkari will speak at the Santa Barbara County Economic Summit on interest rates, monetary policy, and the economy at 12.05 pm ET.

The Fed Balance Sheet for the week is expected at 4.30 pm ET. In the previous week, the level was $3.892 trillion.

The Fed Money Supply for week is scheduled at 4.30 pm ET. The M2 weekly change was $51.6 billion.

In the corporate sector, Retail giant Walmart Inc. reported an 80 percent surge in profit for the first quarter from last year, reflecting higher revenues and a gain on the company's equity investment in JD.com. For the first quarter, consolidated net income attributable to Walmart rose to $3.84 billion or $1.33 per share from $2.13 billion or $0.72 per share in the same period last year. The latest quarter's results include an unrealized gain, net of tax, of $0.20 per share on the company's equity investment in JD.com.

Excluding items, adjusted earnings for the quarter were $1.13 per share, compared to $1.14 per share in the year-ago period. On average, analysts polled by Thomson Reuters expected the company to report earnings of $1.02 per share. Analysts' estimates typically exclude special items.

Total revenue for the quarter, comprising net sales and Membership and other income, grew 1.0 percent to $123.93 billion from $122.69 billion in the year-ago period. Excluding currency, total revenue increased 2.5 percent. Analysts were looking for revenues of $124.98 billion for the quarter.

Net sales grew 1.1 percent to $122.95 billion, while Membership and other income declined 7.9 percent to $976 million.

Huawei is facing a set back in U.S. as President Trump signed an executive order barring use of telecom gears that might cause a national security threat.

Asian stocks ended mostly positive on Thursday. China's Shanghai Composite index rose 17.03 points or 0.58 percent to 2,955.71. Hong Kong's Hang Seng index finished marginally higher at 28,275. 07.

Japanese shares fell. The Nikkei average shed 125.58 points or 0.59 percent to 21,062.98 while the broader Topix index dropped 6.60 points or 0.43 percent to 1,537.55.

Australian markets finished modestly higher. The benchmark S&P/ASX 200 index climbed 43.60 points or 0.69 percent to 6,327.80 while the broader All Ordinaries index ended up 46.60 points or 0.73 percent at 6,417.50.

European shares are trading higher. CAC 40 of France is adding 21.72 points or 0.40 percent. DAX of Germany is progressing 100.46 points or 0.83 percent. FTSE 100 of England is gaining points 23.40 or 0.32 percent. Swiss Market Index is up 97.17 points or 1.02 percent.

Euro Stoxx 50 that provides a Blue-chip representation of supersector leaders in the Eurozone, is up 0.32 percent.

For comments and feedback contact: editorial@rttnews.com

Market Analysis

Follow RTT