US STOCKS-Wall Street heads for strong open on tech boost

Published 02/09/2020, 13:49
Updated 02/09/2020, 13:54
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* Private payrolls increase 428,000 in August
* Nvidia climbs as analysts cheer new gaming chip
* Macy's gains on smaller quarterly loss on online boost
* Futures up: Dow 0.57%, S&P 0.62%, Nasdaq 1.07%

(Adds comment, details; Updates prices)
By Medha Singh and Devik Jain
Sept 2 (Reuters) - Wall Street's main indexes were set to
open higher on Wednesday with the S&P 500 and Nasdaq eyeing new
highs, as demand for technology stocks overshadowed data showing
a smaller-than-expected increase in U.S. private payrolls last
month.
Nvidia Corp NVDA.O gained 5.6% premarket after several
brokerages hiked their price targets on its shares following the
announcement of powerful gaming chips in collaboration with
Micron Technology Inc MU.O and Samsung Electronics Co Ltd
005930.KS .
High-flying shares of technology companies, seen as
resilient to the hit from the coronavirus outbreak, including
Apple Inc AAPL.O , Amazon.com AMZN.O , Facebook Inc FB.O and
Slack Technologies Inc WORK.N rose between 0.9% and 2.1% in
high volumes.
U.S. private employers hired 428,000 workers in August,
according to the ADP National Employment report, far below
economists' forecast of a 950,000 increase. The report follows
encouraging manufacturing sector surveys on Tuesday.
As the COVID-19 pandemic rages on, signs that the recovery
in the labor market was faltering has been a worry for
investors. The more comprehensive monthly jobs report is slated
for Friday.
The U.S. Federal Reserve's move to revamp its policy
framework to support maximum employment has fueled a Wall Street
rally, and sent the S&P 500 and Nasdaq to new closing highs.
The Dow is about 3% below its all-time high hit on Feb. 12.
"Markets continue to seek the positive and ignore the
negatives," said Chris Beauchamp, chief market analyst at IG.
"But it is odd to see such relentless positivity in U.S.
markets when the pandemic has yet to subside. The economic
impact is only just being felt and we have a U.S. presidential
election just a few weeks away."
Market experts have warned that at these elevated levels,
Wall Street's indexes are ripe for pullback, especially in the
weeks leading up to the election in November. President Donald Trump has overtaken Democratic rival Joe
Biden to stand as the favorite to win the election on
Europe-based betting exchange Betfair, while in a Reuters/Ipsos
national opinion poll on Wednesday, 40% of registered voters
supported Trump, compared with 47% who said they will vote for
Biden. "The U.S. presidential race is tightening and the market
sees that as good, for not just the hope that President Trump
might get reelected, but also, even if Biden wins, this
tightening means he'll be more moderate," said Christopher
Grisanti, chief equity strategist at MAI Capital Management in
Cleveland.
At 8:24 a.m. ET, Dow e-minis 1YMcv1 were up 164 points, or
0.57%. S&P 500 e-minis EScv1 were up 21.75 points, or 0.62%
and Nasdaq 100 e-minis NQcv1 were up 131.25 points, or 1.07%.
Macy's Inc M.N gained 5.1% after it reported a
smaller-than-expected quarterly loss, as shoppers stuck indoors
due to the pandemic bought more apparel using the department
store chain's app and website.

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