US STOCKS-Futures bounce as China industrial profits rise

  • Reuters
  • Stock Market News
US STOCKS-Futures bounce as China industrial profits rise

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* Futures up: Dow 1.32%, S&P 500 1.33%, Nasdaq 1.71%

By Devik Jain

Sept 28 (Reuters) - U.S. stock index futures rose on Monday as hopes of a global economic recovery were supported by data showing continued growth in China's industrial profits, while beaten down shares of banking and travel firms bounced.

Shares of American Airlines Group Inc AAL.O , United Airlines UAL.O , cruise operators Royal Caribbean Cruises Ltd RCL.N and Carnival Corp (LON: CCL ) CCL.N rose between 2.5% and 5.6% in premarket trading.

American Airlines Group Inc AAL.O said it has secured a $5.5 billion Treasury loan and could tap up to $2 billion more in October depending on the allocation of extra funds under a $25 billion loan package for airlines. spilled over from Asian trading hours after data over the weekend showed profits at China's industrial firms grew for the fourth straight month in August. Street's main indexes ended higher on Friday, helped by technology stocks, but the Dow Jones .DJI and the S&P 500 .SPX indexes posted their longest weekly losing streaks in a year on fears of a slowing pace of economic growth.

Worries over rising coronavirus cases and waning hopes of more fiscal stimulus have led to a spike in market volatility in the past few weeks, and analysts expect trading to remain choppy in the run up to the Nov. 3 presidential election.

The CBOE Volatility index .VIX , also known as Wall Street's fear gauge, spiked to its highest in nearly two weeks last Monday, with analysts warning of further upside to the index heading toward the end of the quarter.

Shares of technology-related stocks including Facebook Inc FB.O , Alphabet Inc GOOGL.O , Amazon.com Inc AMZN.O , Apple Inc AAPL.O and Netflix Inc NFLX.O , perceived as relatively safe assets at a time of economic uncertainty, rose between 1.1% and 2.2%.

At 6:39 a.m. ET, Dow e-minis 1YMcv1 were up 357 points, or 1.32%. S&P 500 e-minis EScv1 were up 43.75 points, or 1.33% and Nasdaq 100 e-minis NQcv1 were up 190 points, or 1.71%.

U.S. big banks JPMorgan Chase (NYSE: JPM ) & Co JPM.N , Goldman Sachs Group Inc (NYSE: GS ) GS.N , Morgan Stanley (NYSE: MS ) MS.N , Wells Fargo (NYSE: WFC ) & Co WFC.N and Bank of America Corp (NYSE: BAC ) BAC.N and Citigroup Inc (NYSE: C ) C.N added between 0.8% and 2%.

Boeing (NYSE: BA ) BA.N shares rose 2.5% after the FAA Chief Steve Dickson said the agency is set to conduct a 737 MAX evaluation flight this week, a key milestone as the planemaker aims for approval to resume flight. of chip gear makers Lam Research Corp LRCX.O , Applied Materials Inc AMAT.O , and KLA Corp KLAC.O fell more than 1.5% as the United States imposed curbs on exports to China's biggest chip maker SMIC 0981.HK , citing risk of military use.

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