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Tesla gains on higher sales of China-made electric
vehicles
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Virgin Orbit falls after filing for bankruptcy
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AMC Entertainment slumps after litigation deal
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Futures up: Dow 0.09%, S&P 0.28%, Nasdaq 0.40%
(Updates prices throughout)
By Ankika Biswas and Amruta Khandekar
April 4 (Reuters) - Wall Street's main indexes were set
to open higher on Tuesday on gains in technology and growth
stocks, while investors awaited key economic data that could
decide the U.S. Federal Reserve's monetary tightening path.
Tesla Inc edged 0.8% higher in premarket trading as
sales of its China-made electric vehicles rose in March. Its
shares were set to bounce back from 6% declines on Monday
following data on March-quarter deliveries.
Other major growth names such as Microsoft Corp ,
Alphabet Inc and Amazon.com Inc climbed
between 0.5% and 1%, helping futures tracking the tech-heavy
Nasdaq outperform peers.
Meanwhile, rising oil prices following the OPEC+ group's
output cuts have renewed fears about inflation, denting hopes of
an end to aggressive interest rate hikes despite recent signs of
cooling prices and turbulence in the banking sector.
"We think that it (soaring oil prices) will cause inflation
to remain sticky and the Fed definitely wants to ensure that
they have a stranglehold on inflation before they take their
foot off the brake," said Sam Stovall, chief investment
strategist of CFRA Research in New York.
Strong gains in energy firms helped the S&P 500 close
higher on Monday, with the energy sub-index clocking its
strongest one-day gain in six months.
Energy companies Chevron Corp , Exxon Mobil Corp and Occidental Petroleum Corp rose between 0.4%
and 1% before the bell on Tuesday.
Bets by traders of a 25-basis point rate hike in May stood
at 64.3%, with odds of a pause at 35.7%, according to CME
Group's Fedwatch tool.
Later in the day, investors will watch out for data on U.S.
job openings that is likely to show a fall in February, as they
attempt to assess if the aggressive rate hikes have cooled the
economy to the Fed's satisfaction.
A separate report expected is likely to show factory orders
fell 0.5% in February and will come on the heels of surveys
showing weak U.S. manufacturing activity in March.
"Factory orders are expected to show a decline. That would
imply that the war against inflation is working," said Stovall.
Remarks by Fed Board Governor Lisa Cook, Fed Boston
President Susan Collins and Fed Cleveland President Loretta
Mester will also be parsed for any clues on the rate-hike
trajectory.
The S&P 500 and the tech-heavy Nasdaq have gained
7.4% and 16.5% so far in 2023, steadying from their worst annual
drop last year since the 2008 financial crisis, on expectations
that the Fed may go easy with its policy tightening.
At 7:59 a.m. ET, Dow e-minis were up 32 points, or
0.09%, S&P 500 e-minis were up 11.75 points, or 0.28%,
and Nasdaq 100 e-minis were up 53.25 points, or 0.40%.
Among stocks, Virgin Orbit Holdings Inc tanked
23.7% after the satellite launch company filed for Chapter 11
bankruptcy on failing to secure long-term funding.
AMC Entertainment Holdings Inc shares tumbled 26.8%
after the movie theater chain said it agreed to settle
litigation and proceed with converting its preferred stock into
common shares.
(Reporting by Ankika Biswas in Bengaluru; Additional reporting
by Shristi Achar A; Editing by Arun Koyyur and Shounak Dasgupta)
