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US STOCKS-Wall St set to bounce as investors bet on stimulus to thwart recession

Published 13/03/2020, 14:17
US STOCKS-Wall St set to bounce as investors bet on stimulus to thwart recession
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* Cruise liners, airlines set to lead rebound in stocks

* Oracle gains as results top estimates

* Futures up: Dow 5.26%, S&P 5.10%, Nasdaq 5.65%

(Adds details; Updates prices)

By Sanjana Shivdas

March 13 (Reuters) - Wall Street was set for a strong

rebound on Friday, with the Dow on course to jump nearly 1,000

points at the open as investors hoped more fiscal easing would

head off a global recession.

After the worst daily selloff in more than three decades on

Wall Street, airlines, cruise liners and energy stocks were set

to recover ground on optimism that U.S. Democrats and

Republicans could announce a stimulus package by Friday.

The Dow and the S&P 500 indexes, which had crashed almost

10% on Thursday, are still down over 25% from record highs hit

mid-February and headed for their worst week since the financial

crisis.

Policy easing by central banks in Asia lifted equities and

bond yields in early trading on Friday, sending shares of major

U.S. banks including Bank of America Corp BAC.N , Citigroup Inc

C.N and JPMorgan Chase & Co JPM.N up between 7.5% and 11%.

"What we're headed for is a market that should begin to

settle down (with) investors now expecting the government to get

the economic plan in place and get it into law," said Peter

Cardillo, chief market economist at Spartan Capital Securities

in New York.

Travel stocks, which have borne the brunt of the selloff,

were set to rise, with cruise operators Carnival Corp CCL.N ,

Royal Caribbean RCL.N and Norwegian Cruise Line Holdings

NCLH.N up between 22.7% and 34.1%.

United Airlines UAL.O rose 10.6% a day after losing a

quarter of its value as the travel disruptions forced it to draw

down $2 billion of existing cash reserves.

Energy companies .SPNY , which suffered their worst

four-day declines on record due to a plunge in oil prices, were

tracking crude price higher. O/R

Oil majors Exxon Mobil XOM.N and Chevron Corp CVX.N also

rose more than 4%, while Occidental Petroleum Corp OXY.N ,

Halliburton Co HAL.N , Apache Corp APA.N jumped more than

At 8:59 a.m. ET, Dow e-minis 1YMcv1 were up 1,110 points,

or 5.26%. S&P 500 e-minis EScv1 were up 126 points, or 5.1%

and Nasdaq 100 e-minis NQcv1 were up 407.5 points, or 5.65%.

Among individual movers, software company Oracle Corp

ORCL.N jumped 11.8% after topping quarterly profit and revenue

expectations and flagging a "minimal impact" from the virus

outbreak on fourth-quarter revenue. Gap Inc GPS.N climbed 7.1% as it forecast 2020 profit

above market expectations. It also flagged a $100 million sales

hit in Asia and Europe from the coronavirus outbreak.

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