(CercleFinance.com) – Wall Street should rebound Thursday morning, supported, like the European stock markets, by solid corporate results and rather encouraging indicators on the economic front.
A few minutes before the opening, the futures contracts on the New York indices advanced from 0.8% to 1%, announcing a start to the session in positive territory.
The trend had worsened in recent days on US equity markets, mainly due to renewed concerns about the evolution of the Fed’s monetary policy.
But investors’ attention is currently turning away from Washington to corporate earnings results, most of the time with good surprises in store.
The rating is notably driven by the enthusiastic reception given by investors to Disney’s quarterly results.
As part of its publication, the entertainment giant announced last night a massive reorganization, which will notably go through significant cost reductions and a massive layoff plan to affect some 7,000 people.
The action of the media group was indicated up 6.5% in pre-market transactions.
Another solid publication, PepsiCo is also expected to rise at the opening after reporting better-than-expected quarterly performance and raising the amount of its dividend in the process.
After their start to the year with a bang, the major US indices had lost some momentum since the start of the earnings season, with a number of publications showing that the drop in demand is now beginning to impact companies.
The day’s data also boosted the trend as it showed a slight slowdown in the labor market, suggesting a pause in the Fed’s rate hike cycle.
After the spectacular employment figures published last Friday, registrations for unemployment benefits have indeed increased by 13,000 during the week of January 30, to 196,000 against 183,000 the previous week.
Wall Street is also benefiting from a decline in bond yields, with the 10-year paper rate falling to 3.58% after having recently reached its annual highs.
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