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US stocks expected to rise on easing oil prices, holiday season sales

Devdiscourse News Desk Last Updated at 26-11-2018 19:41:18 IST United States
US stocks expected to rise on easing oil prices, holiday season sales
  • (Image Credit: Pixabay)

Wall Street was set to open sharply higher on Monday, following a steep sell-off in the previous session, buoyed by easing oil prices and hopes of a robust sales in the holiday season. Shoppers who missed out on deals this past Black Friday are expected to flock to online sites on Cyber Monday, giving retailers a strong start to their make-or-break holiday season.

Shares of e-commerce giant Inc jumped 2.1 per cent and eBay Inc gained 1.9 per cent in premarket trading.

Other retailers, including Best Buy Inc, Walmart Inc and Target Corp, also rose around 1 per cent each.

"We had a pretty miserable week in terms of the equity markets and sometimes you get a relief rally, markets could be bouncing a little bit based on that," said Randy Frederick, vice president of trading and derivatives for Charles Schwab in Austin, Texas.

"I think the anticipation ahead of the holidays is that it would be a pretty strong season and Black Friday is a big part of that."

Wall Street's main indexes fell more than 3 per cent last week, with the Dow and the Nasdaq posting their biggest weekly percentage declines since March, on plunging oil prices, worries about slowing global growth and peaking corporate earnings.

The S&P 500 on Friday closed 10.2 per cent lower from its record closing high on Sept.20, confirming a correction for the second time in the year.

At 8:37 a.m. ET, Dow e-minis were up 239 points, or 0.99 per cent. S&P 500 e-minis were up 28.25 points, or 1.07 per cent and Nasdaq 100 e-minis were up 97.5 points, or 1.49 per cent.

Oil prices rose, paring some its losses from the near-7 per cent fall on Friday, lifting Dow components Exxon Mobil Corp up 0.9 per cent and Chevron Corp 1.0 per cent.

Other members of the so-called FAANG group also rose, with shares of Facebook Inc, Apple Inc, Netflix Inc and Google-parent Alphabet gaining between 1 per cent and 2 per cent.

Also on the forefront of investors' minds is the G20 summit this week, where U.S. President Donald Trump and his Chinese counterpart Xi Jinping are expected to hold trade talks in Buenos Aires, Argentina.

Among other stocks, Nvidia Corp rose 2.7 per cent after Credit Suisse initiated coverage on the chip designer's shares with an "outperform" rating and said the recent weakness in shares provide a compelling entry point.

Smaller rival Advanced Micro Devices also gained 3.2 per cent.

(With inputs from agencies.)

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