US STOCKS-Wall St set to rise as U.S. starts to reopen, Boeing gains

Published 27/04/2020, 14:16
Updated 27/04/2020, 14:18
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* Boeing gains after scrapping Embraer deal
* Apple pares early gains on report of production delay
* BOJ pledges unlimited bond buying
* Futures gain: Dow 1.02%, S&P 500 1.03%, Nasdaq 1.26%

(Adds comments, details; updates prices)
By C Nivedita
April 27 (Reuters) - Wall Street was set to rise at the open
on Monday as more states prepared to lift coronavirus-induced
curbs and Boeing gained after pulling out of a deal to buy
Embraer's commercial jets division.
The U.S. planemaker BA.N rose 1.9% in premarket trading
after withdrawing from the $4.2 billion deal, sparking a furious
response from its jilted partner and leaving plans for a
U.S.-Brazil alliance from regional jets to jumbos in tatters.
A late session rally for tech majors had helped Wall Street
end higher on Friday, with sentiment also getting a boost from
Georgia becoming the first state to ease restrictions despite
disapproval from President Donald Trump and health experts.
Although trillions of dollars in stimulus have helped the
S&P 500 recover nearly 30% from March lows, analysts say more
gains may be capped with the economic damage growing, unless
there is progress on treatments for the disease. "There are so many things that can go wrong in the next six
months," said Marc Chaikin, founder of Chaikin Analytics in
Philadelphia.
"While we may or may not break the March 23rd lows in the
stock market, history suggests that bear markets end with a
whimper and not a bang."
White House economic adviser Kevin Hassett told reporters on
Sunday the U.S. jobless rate would likely hit 16% or more in
April. Against that, many more U.S. states were looking to
reopen businesses. With the Bank of Japan rolling out more stimulus on Monday,
focus this week will be on the Federal Reserve's meeting ending
on Wednesday, although expectations are low for more easing by
the U.S. central bank.
At 9:06 a.m. ET, Dow e-minis 1YMcv1 were up 242 points, or
1.02%. S&P 500 e-minis EScv1 were up 29.25 points, or 1.03%
and Nasdaq 100 e-minis NQcv1 were up 110.25 points, or 1.26%.
About 173 companies in the S&P 500 are scheduled to report
quarterly earnings this week, including Apple AAPL.O ,
Amazon.com AMZN.O , Microsoft MSFT.O , Boeing BA.N , Ford
F.N , General Electric GE.N and Chevron CVX.N .
Overall, analysts expect a decline of nearly 15% in
first-quarter earnings of S&P 500 companies, with profits for
the energy sector estimated to have slumped 68%.
Apple gave up some early gains after a report said the
company was delaying the production ramp-up of its flagship
iPhones coming later this year by about a month. Caterpillar Inc CAT.N slipped 1.6% and was the biggest
decliner among Dow constituents as Morgan Stanley downgraded the
heavy equipment maker to "underweight".
Bank of America Corp BAC.N , Citigroup Inc C.N , JPMorgan
Chase & Co JPM.N and Goldman Sachs GS.N rose between 1.6%
and 3% as the risk-on sentiment propped up the U.S. benchmark
10-year Treasury yield US10YT=RR . US/

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