US stock rose with tech giants Alphabet, Amazon surge
U.S. stock futures rose on Tuesday, as strong earnings from Home Depot Inc and a rebound in technology stocks put Wall Street on track to end a three-day run of losses.
Shares of Home Depot rose 3.5 per cent in premarket trading after the No.1 home improvement chain reported a better-than-expected rise in sales at established U.S. stores.
Rival Lowe's Cos Inc rose 1.9 per cent. The report comes in a week that is heavy on retail earnings, from companies including Walmart Inc and Macy's Inc, that could show how rising wages in the United States are eating into margins.
Wage pressures could increasingly be an issue as earnings growth for S&P 500 companies is expected to slow to about 9 per cent next year following 2018's tax-fueled gains, estimated at 24 per cent, according to IBES data from Refinitiv.
At 7:19 a.m. ET, Dow e-minis were up 161 points, or 0.63 per cent. S&P 500 e-minis were up 19 points, or 0.7 per cent and Nasdaq 100 e-minis were up 63.25 points, or 0.93 per cent.
The main indexes tumbled on Monday as shares of Apple Inc slid 5 per cent after several suppliers to the iPhone maker cut their forecasts, signalling that demand for iPhones could be softening.
Apple's shares edged lower on Tuesday. A key supplier and contract electronics maker, Foxconn, reported a weaker-than-expected rise in quarterly profit.
Other tech and internet giants including Alphabet Inc, Amazon.com Inc and Netflix Inc rose more than 1 per cent in premarket trading following sharp losses on Monday.
After a stellar rally for technology shares that has fueled a decade-long gain for U.S. stocks, appetite for the group has started to wane lately on concerns about tighter regulation and demand for chipmakers.
Allocation to the global tech sector collapsed to the lowest since February 2009, with just 18 per cent of investors saying they were overweight on the sector, Bank of America Merrill Lynch's investor survey showed.
The survey also showed U.S. remains the most favoured equity region for global fund managers despite recent market wobbles, with the S&P 500 index broadly expected to rise 12 per cent more before peaking.
A report that China's top trade negotiator was preparing to visit the United States before a meeting between the leaders of the world's two largest economies helped early trading.
Oil prices fell more than 2 per cent after U.S. President Donald Trump put pressure on OPEC not to cut supply to prop up the market.
Among other stocks, Advance Auto Parts Inc rose 4.2 per cent after the auto parts maker raised full-year sales forecast and reported better-than-expected third-quarter results.
Tyson Foods Inc fell 3.4 per cent after fourth-quarter revenue fell short of Wall Street estimates.
(With inputs from agencies.)