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US STOCKS-Wall St set to rise on Disney's surprise profit, upbeat healthcare results

Published 05/08/2020, 13:32
Updated 05/08/2020, 13:36
© Reuters.
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* Walt Disney set to hit month high
* Energy stocks gain as oil prices touch 5-month high
* CVS, Humana, Regeneron rise after profit beat
* Livongo climbs on $18.5 bln takeover bid from Teladoc
Health
* Futures up: Dow 0.66%, S&P 0.47%, Nasdaq 0.15%

(Adds quote, details; updates prices)
By Medha Singh
Aug 5 (Reuters) - Wall Street's main indexes were set to
open higher on Wednesday as Disney's surprise quarterly profit
and a slate of upbeat results from healthcare companies lifted
sentiment ahead of service sector data.
Walt Disney Co DIS.N shares jumped 6.6% premarket and were
set to hit a two-month high as revenue declines for its parks
and media networks were not as bad as feared. Drugstore operator and health insurer CVS Health Corp
CVS.N raised its full-year profit forecast, while Humana Inc
HUM.N and drugmaker Regeneron Pharmaceuticals Inc REGN.O
beat estimates for quarterly profit. Their shares rose about 3%
each after results. "Disney's beat helped continue the market's advance. In
general, earnings have been coming in better than expected,"
said Sam Stovall, chief investment strategist, CFRA Research.
Better-than-expected corporate results and a surge in shares
of heavyweight technology companies have fueled a
stimulus-driven rally in Wall Street's main indexes, bringing
the S&P 500 within 2.5% of its record high hit in February.
U.S. private payrolls increased by 167,000 in July after a
strong rebound of 2.37 million in June, according to the ADP
National Employment Report, a precursor to the monthly jobs
report on Friday. Economists expected 1.5 million additions last
month.
Focus now turns to ISM's non-manufacturing survey, due later
in the day.
Investors have been concerned about signs that the U.S.
economic activity is stalling amid a surge in COVID-19
infections in parts of the country, strengthening the case for
more fiscal aid.
White House negotiators on Tuesday vowed to work "around the
clock" with congressional Democrats to try to reach a deal on
coronavirus relief package by the end of this week. At 8:25 a.m. ET, Dow e-minis 1YMcv1 were up 177 points, or
0.66%, S&P 500 e-minis EScv1 were up 15.5 points, or 0.47%,
and Nasdaq 100 e-minis NQcv1 were up 16.25 points, or 0.15%.
Energy giants Exxon Mobil Corp XOM.N and Chevron Corp
CVX.N rose about 2% each as oil prices rose to their highest
since early March. O/R
Teladoc Health TDOC.N slipped 1.7% as the telehealth
market leader said it would buy Livongo Health Inc LVGO.O in a
cash-and-stock deal, valuing the company at $18.5 billion.
Livongo shares advanced 7.6%. Activision Blizzard ATVI.O raised its full-year forecast
for adjusted sales encouraged by a pandemic-driven surge in
gaming. Its shares fell 1.5% after closing at a record high on
Tuesday.

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