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Wall Street set to open higher on hopes of stimulus, rebound

Kitco News

(Reuters) - Wall Street’s main indexes were set to rise on Monday following a selloff last week as investors weighed hopes of more stimulus and improving data against a resurgence in global coronavirus cases.

The three indexes had tumbled more than 2% on Friday as several U.S. states imposed business restrictions in response to the surge in COVID-19 cases. The global death toll from the respiratory illness crossed half a million on Sunday, with about one-quarter of them in the United States.

The benchmark S&P 500 .SPX has rallied since a coronavirus-driven crash in March, up about 16% since April and set for its best quarter since 1998, partly on a raft of U.S. fiscal and monetary stimulus.

This week, investors will focus on employment, consumer confidence and manufacturing data for June for signs of whether the U.S. economy will continue to rebound after indications of a pickup in May.

“The market is taking a tremendous amount of comfort in the fact that as long as we contain the virus, the economy is going to recover very fast and you’re going to see cyclical stocks start to rally again,” said Thomas Hayes, managing member at Great Hill Capital LLC in New York.

At 8:06 a.m. ET, Dow e-minis 1YMcv1 were up 203 points, or 0.81%, S&P 500 e-minis EScv1 were up 15.25 points, or 0.51% and Nasdaq 100 e-minis NQcv1 were up 6.75 points, or 0.07%.

Among stocks, Boeing Co (BA.N) rose 7.5% in premarket trade after the Federal Aviation Administration confirmed on Sunday it had approved key certification test flights for the grounded 737 MAX that could begin as soon as Monday.

Boeing suppliers were also up, with Spirit AeroSystems Holdings Inc (SPR.N) rising 5.7%.

Gilead Sciences Inc (GILD.O) edged 2.8% higher as it priced its COVID-19 drug candidate remdesivir at $2,340 for a five-day treatment in the United States and some other developed countries.

Facebook Inc (FB.O) looked set to extend declines from Friday as a report said PepsiCo Inc (PEP.O) was set to join a growing number of companies pulling ad dollars from the social media platform.

Reporting by Pawel Goraj in Gdan

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