Wall Street set to open higher on Microsoft, Tesla results

(Reuters) – Wall Street was on course to open higher on Thursday, as stable results from Microsoft, Lam Research and Tesla lifted sentiment following lackluster stories from massive bellwether corporations within the earlier session.

FILE PHOTO: Traders work on the ground on the New York Stock Exchange (NYSE) in New York, U.S., October 22, 2019. REUTERS/Brendan McDermid

Third-quarter earnings stories are middle stage as traders strive to gauge the fallout from a drawn out U.S.-China commerce battle, which has already proven up within the home financial system.

But the narrative to this point has been pretty upbeat, with solely a small crop of corporations together with industrial large Caterpillar (CAT.N), toymaker Hasbro Inc (HAS.O) and chipmaker Texas Instruments (TXN.O) blaming the tariff strikes for denting results.

Tech large Microsoft Corp (MSFT.O) gained 1.1% premarket as its forecast for cloud computing companies surpassed analysts’ expectations. Tesla Inc (TSLA.O) surged 18% after a shock quarterly revenue.

Lam Research Corp (LRCX.O) jumped 7% after the chip gear maker forecast sturdy results for the December quarter.

Semiconductor shares together with these of Microchip Technology (MCHP.O), Micron (MU.O) and Nvidia (NVDA.O) regarded set to recuperate from a selloff within the earlier session, sparked by a income warning from business proxy Texas Instruments.

But Twitter Inc (TWTR.N) plunged practically 20% after the social media platform posted worse-than-expected third quarter results.

Of the 124 S&P 500 corporations that reported results up to Wednesday, greater than 82% topped earnings estimates, in accordance to Refinitiv knowledge.

The S&P 500 index .SPX got here inside a hair’s breadth of its document excessive this week on upbeat company earnings to this point and indicators of progress in resolving commerce tensions between the world’s high two economies.

White House commerce adviser Peter Navarro mentioned on Thursday the phase-one commerce deal between Washington and Beijing would come with a lot of an settlement scrapped in May round mental property.

Market individuals are maintaining shut tabs on the well being of the home financial system after knowledge earlier in October confirmed a pointy contraction in manufacturing and services-sector exercise slowing to a three-year low.

Markit PMI surveys for the manufacturing and companies sectors, due 9:45 a.m. ET, will supply additional readability after a combined bag of enterprise sentiment indicators from main economies together with Japan and the euro zone.

At eight:55 a.m. ET, Dow e-minis 1YMcv1 have been up 47 factors, or zero.18%. S&P 500 e-minis EScv1 have been up 6 factors, or zero.2% and Nasdaq 100 e-minis NQcv1 have been up 45.75 factors, or zero.58%.

Comcast Corp (CMCSA.O) and Dow Inc (DOW.N) gained three% every after the 2 corporations exceeded revenue estimates.

PayPal Holdings Inc (PYPL.O) jumped eight% after the fee processing platform forecast full-year revenue above expectations.

Post-it notes maker 3M Co (MMM.N) fell 2% after reducing its full-year revenue forecast and lacking third-quarter income estimates.

Amazon.com Inc (AMZN.O), Intel Corp (INTC.O) and Visa Inc (V.N) are among the many high-profile corporations slated to report after markets shut on Thursday.

Reporting by Shreyashi Sanyal and Arjun Panchadar in Bengaluru; Editing by Bernard Orr and Anil S’Silva

Our Standards:The Thomson Reuters Trust Principles.

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