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Tesla gains after clearing self-driving hurdles in China
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Apple ( AAPL ) rises after report of talks with OpenAI
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Domino's Pizza up on beating sales expectations as orders
thrive
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Futures up: Dow 0.1%, S&P 0.1%, Nasdaq 0.3%
(Updated at 07:08 a.m. ET/ 1108 GMT)
By Shristi Achar A and Johann M Cherian
April 29 (Reuters) - U.S. stock index futures edged
higher on Monday as Tesla and Apple ( AAPL ) led gains in megacap
companies, while investors exercised caution ahead of the
Federal Reserve's interest rate decision later in the week.
Tesla shares jumped 9.3% premarket after the
electric vehicle maker cleared some key regulatory hurdles that
had long hindered it from rolling out its self-driving software
in China, the U.S. automaker's second-largest market.
Apple ( AAPL ) added 2% after a report that the iPhone maker
had renewed discussions with OpenAI about using the startup's
generative artificial intelligence (AI) technology. Bernstein
upgraded the stock to "outperform".
U.S. stocks closed higher on Friday, buoyed by moderate
inflation data and a rally in megacap growth stocks following
robust quarterly results from technology heavyweights Alphabet
and Microsoft.
Also offering support, Israel-Hamas peace talks in Cairo
eased fears of a wider conflict in the Middle East.
Focus will now shift to the Fed's interest rate decision due
on Wednesday, ahead of a key jobs report on Friday that could
set the tone for market direction in the near-term.
"We are not expecting a lot from the Fed this week. Powell
would likely reiterate his latest comments that the recent set
of strong data would delay rate cuts," Mohit Kumar, chief
economist Europe at Jefferies, said in a note.
"Focus would also be on reducing the pace of (quantitative
tightening)."
Money markets are pricing in just about 36 basis points
(bps) of interest rate cuts this year, down from about 150 bps
seen at the beginning of the year, according to LSEG.
At 07:08 a.m., Dow E-minis were up 33 points, or
0.11%, S&P 500 E-minis were up 8.25 points, or 0.16%,
and Nasdaq 100 E-minis were up 48 points, or 0.27%.
Earnings season is in full swing, with adjusted blended
earnings for the first quarter estimated to grow 8.7% on a
year-over-year basis, according to LSEG data.
Domino's Pizza jumped 5% after topping Street
expectations for first-quarter same-store sales, as consumers in
the United States tapped into the pizza chain's spruced-up
loyalty program and other promotional offerings.
Of the 229 companies in the S&P 500 that have reported
quarterly earnings as of Friday, 77.7% surpassed analyst
expectations, compared with a long-term average of 66.7%.
Reports from 3M ( MMM ), Coca-Cola, Apple ( AAPL ),
Amazon.com ( AMZN ) and Mastercard ( MA ) are expected later in
the week.
Among other movers on Monday, Paramount Global ( PARAA )
gained 5% after a report that the Redstone family and Skydance
Media CEO David Ellison have made concessions to make a
potential change in control of the streaming firm more appealing
for other investors.
Cryptocurrency-linked stocks fell premarket, tracking lower
bitcoin prices. Crypto exchange Coinbase Global ( COIN ) and
crypto miners Riot Platforms ( RIOT ) and Marathon Digital ( MARA )
were down between 2.4% and 3.6%.
(Reporting by Shristi Achar A and Johann in Bengaluru; Editing
by Devika Syamnath)