A trader works inside a booth on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., November 8, 2021. REUTERS/Brendan McDermid
Nov 11 (Reuters) – U.S. stock indexes were set to rebound on Thursday from a two-day selloff over signs of prolonged inflation, while Walt Disney Co tumbled as subscriber growth slowed in its streaming video service.
The S&P 500 (.SPX) and the Nasdaq (.IXIC) snapped their eight-session run of all-time closing highs earlier this week as investors booked profits from recent gains, while surging price pressures also dented risk appetite. read more
Inflation reports from earlier in the week have exacerbated concerns that the current spike in prices may take longer to cool, with global supply chains still strained.
However, Arthur Hogan, chief market strategist at National Securities in New York, said investors are able to look beyond the near term and say, “we just have more demand than supply.”
“And that’s likely a good thing for future growth in earnings.”
Walt Disney Co (DIS.N) dropped 5.8% in premarket trading to lead declines among Dow (.DJI) components, as it reported the smallest rise in Disney+ subscriptions since the service’s launch and posted downbeat profit at its theme park division. read more
Tesla Inc (TSLA.O) gained 2.7% to claw back some ground lost from its 12.6% drop earlier in the week, even after filings showed Chief Executive and top holder Elon Musk had sold about $5 billion of the stock over recent days. read more .
Other mega-cap technology and communications stocks including Google-owner Alphabet Inc (GOOGL.O), Microsoft Corp (MSFT.O), Meta Platforms Inc (FB.O), formerly known as Facebook, Apple Inc (AAPL.O) and Amazon.com Inc (AMZN.O) rose between 0.5% and 1.0%.
Shares of big banks JPMorgan Chase & Co (JPM.N) and Bank of America (BAC.N), as well as industrials Boeing Co (BA.N) and Caterpillar Inc (CAT.N), also moved higher.
At 8:21 a.m. ET, Dow e-minis were up 31 points, or 0.09%, S&P 500 e-minis were up 16.5 points, or 0.36%, and Nasdaq 100 e-minis were up 110.25 points, or 0.69%.
Amazon-backed electric-vehicle maker Rivian Automotive Inc (RIVN.O) jumped 6.1%, adding to the nearly 30% gain on its blockbuster trading debut. read more
Tapestry Inc (TPR.N) gained 5.9% after the Coach handbag maker raised its annual sales forecast, boosted by a strong rebound in demand for luxury goods. read more
Market participants were also watching developments around the nomination of the Federal Reserve Chair, with President Joe Biden still weighing whether to keep Jerome Powell for a second term or elevate Fed Governor Lael Brainard to the post. read more
Reporting by Devik Jain and Shreyashi Sanyal in Bengaluru; Editing by Aditya Soni and Arpan Varghese
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