Please use symbol entry at top right of page to search

US STOCKS-Tesla, airlines set to boost Wall Street at open

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

* United Airlines, American Airlines (AAL) jump on earnings outlook

* AT&T (T) up after posting rise in core wireless revenue

* Tesla rises after first-quarter results top estimates

* Futures: Dow 0.71%, S&P 0.94%, Nasdaq 1.31% (Adds comment, details; updates prices)

By Bansari Mayur Kamdar and Sruthi Shankar

April 21 (Reuters) - A surge in Tesla shares was set to lift U.S. equity indexes at the open on Thursday, with airline stocks providing added boost after United Airlines and American Airlines (AAL) forecast a return to profitability in the current quarter.

The world's most valuable automaker jumped 9.4% in premarket trading after its results beat Wall Street expectations as higher prices helped it overcome supply-chain chaos and rising costs.

Meanwhile, United Airlines Holdings Inc and American Airlines Group Inc (AAL) rose 8.7% and 11.3%, respectively, after their upbeat outlook on bookings due to booming travel demand.

Shares of peers Southwest Airlines Co (LUV), JetBlue Airways Corp and Delta Air Lines Inc (DAL) gained between 3.1% and 4.8%.

U.S. stocks fell sharply on Wednesday after dismal results from Netflix Inc (NFLX) triggered a selloff in technology and growth stocks.

"Earnings have been a mixed big so far, obviously you saw the disappointment with Netflix (NFLX). We're probably going to go back and forth on a day-to-day basis," said Scott Brown, chief economist at Raymond James in St. Petersburg, Florida.

"People are still looking at the bond market and the Fed policy over the longer term, it's not just earnings."

Investors will focus on Federal Reserve Chair Jerome Powell's speech later in the day for clues on monetary policy tightening plans, with many expecting a 50 basis points rate hike next month to contain soaring inflation.

Markets have been jittery about the prospect of rising interest rates this year and their impact on rate-sensitive growth stocks.

Manufacturing activity in the Mid-Atlantic region fell short of estimates, while input costs shot to their highest since 1979, a regional Federal Reserve survey showed on Thursday.

Another set showed, the number of Americans filing new claims for unemployment benefits fell moderately last week, suggesting that April was another month of strong job growth.

At 09:01 a.m. ET, Dow e-minis were up 248 points, or 0.71%, S&P 500 e-minis were up 42 points, or 0.94%, and Nasdaq 100 e-minis were up 183 points, or 1.31%.

AT&T Inc (T) rose 1.4% after posting a rise in core wireless revenue for the first quarter, as the telecom giant benefited from the aggressive expansion of its fiber internet and 5G services.

Overall, analysts expect S&P 500 earnings growth of 6.5% in the first quarter as of Wednesday, compared with the 32.1% rise in the previous quarter, according to Refinitiv data. (Reporting by Bansari Mayur Kamdar and Sruthi Shankar in Bengaluru; Editing by Arun Koyyur)

Copyright © Reuters 2008. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world.

Search News

Filter Results

Publication Date
Topic
Provider

News, commentary and research reports are from third-party sources unaffiliated with Fidelity. Fidelity does not endorse or adopt their content. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use.