US STOCKS-S&P 500, Dow set to open higher on recovery hopes

  • Reuters
  • Stock Market News
US STOCKS-S&P 500, Dow set to open higher on recovery hopes
Credit: © Reuters.

(For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.)

* Nio falls on temporary production suspension

* L Brands eyes 3-year high after earnings forecast boost

* Nasdaq set to drop as tech stocks weaken

* Futures: Dow up 0.42%, S&P rises 0.21%, Nasdaq down 0.29% (Adds comment; updates prices)

By Devik Jain and Medha Singh

March 26 (Reuters) - The S&P 500 and the Dow were set to open higher on Friday as investors bought undervalued energy and bank stocks betting on what is expected to be the fastest economic growth since 1984.

The three major U.S. indexes have swung between gains and losses this week as an end-of-quarter rebalancing of investment portfolios led to alternating boost from stocks that stand to benefit from a re-opening economy, and beaten-down technology shares.

The S&P 500 value index .IVX which includes energy, banks and industrial stocks, has gained more than 9% this year, easily outperforming growth .IGX shares, which are down 0.4%.

"Investors are thinking about an economic recovery over the balance of the year and are taking a step back to evaluate valuations, fundamentals and some of the macro economic drivers," said Brian Vendig, managing executive at MJP Wealth Advisors in Westport, Connecticut.

"You have people trying to get back to work, you have checks in hand to consumers and you have other policy measures that are coming to support the economic reopening."

L Brands LB.N jumped about 6% after the Victoria's Secret owner raised its current-quarter profit forecast for the second time this month as it benefits from consumers spending their stimulus checks and relaxation of COVID-19 restrictions. Street's main indexes rebounded in late-day rally on Thursday as weekly jobless claims hit their lowest level since the COVID-19 pandemic began and President Joe Biden highlighted the brightening economic outlook. banks including JPMorgan Chase & Co (NYSE: JPM ) JPM.N , Bank of America (NYSE: BAC ) BAC.N and Citigroup (NYSE: C ) C.N were up between 1.3% and 1.9% as the U.S. Federal Reserve said it would lift income-based restrictions on bank dividends and share buybacks for "most firms" in June after its next round of stress tests. firms Chevron (NYSE: CVX ) CVX.N , Exxon Mobil (NYSE: XOM ) XOM.N , Marathon Oil MRO.N , Occidental (NYSE: OXY ) Petroleum OXY.N and Devon Energy DVN.N rose between 1.5% and 2.8% as crude prices gained 2%. O/R

At 8:36 a.m. ET, Dow E-minis 1YMcv1 were up 135 points, or 0.42%, S&P 500 E-minis EScv1 were up 8.25 points, or 0.21% and Nasdaq 100 E-minis NQcv1 were down 37.5 points, or 0.29%.

Nio Inc NIO.N slumped about 8% as the Chinese electric vehicle maker said it would halt production for five working days at its Hefei plant due to a shortage in semiconductor chips. data showed consumer spending fell more than expected in February as a cold snap gripped many parts of the country and the boost from a second round of stimulus checks faded, though the decline is likely to be temporary.

Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb

Error: File type not supported

Drop an image here or

100

Related Articles