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Salesforce ( CRM ) gains after abandoning talks to buy Informatica ( INFA )
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Tesla down on prices cuts in China, Germany, around globe
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Futures up: Dow 0.50%, S&P 0.43%, Nasdaq 0.44%
(Updated at 8:26 a.m. ET/1226 GMT)
By Shristi Achar A and Shashwat Chauhan
April 22 (Reuters) -
U.S. stocks were poised to open higher on Monday after steep
losses in the previous session as easing Middle East tensions
buoyed risk appetite, while investors looked ahead to an
action-packed week with major tech earnings and a key inflation
print.
The Nasdaq and the S&P 500 ended lower on
Friday as Netflix ( NFLX ) shares weighed after a dour quarterly
earnings report, with both the indexes suffering six straight
sessions of declines last week, their longest since October
2022.
Some megacap growth stocks edged higher in premarket
trading, with Meta Platforms ( META ), Amazon.com ( AMZN ) and
Apple ( AAPL ) up between 0.5% and 1.0%.
Nvidia ( NVDA ) inched up 0.7%, rebounding from a 10% drop
in the last session.
"The market got over-sold on Friday because of Netflix ( NFLX )
earnings, it was primarily a tech-driven decline," said Jay
Hatfield, CEO and portfolio manager at InfraCap.
"We're headed into megacap earnings and so people are
starting to realize that Netflix ( NFLX ) is not very indicative of
what's going to happen with other megacap stocks."
Tesla, Meta Platforms ( META ), Alphabet and Microsoft ( MSFT )
will be in focus this week as the companies gear up to
deliver their quarterly numbers, whose performance could further
test the rally in U.S. stocks.
The risk-on mode was also supported by signs of easing
tensions in the Middle East, as Iran's foreign minister said on
Friday Tehran was investigating an overnight attack, adding that
so far a link to Israel had not been proven as he downplayed the
strike.
Equities have sold-off recently as market participants
readjust their interest rate cut expectations from the U.S.
Federal Reserve after a string of strong economic data signaling
persistent inflationary pressures.
Money markets are now pricing in just about 38 basis points
(bps) of rate cuts this year, down from about 150 bps seen at
the beginning of the year, according to LSEG data.
On the docket this week would be the price consumption
expenditure (PCE) index reading for March -- the Fed's preferred
inflation gauge - to further ascertain the monetary policy
trajectory.
Fed policymakers were in a media blackout ahead of their
latest policy meeting on May 1.
At 8:26 a.m. ET, Dow e-minis were up 192 points, or
0.5%, S&P 500 e-minis were up 21.75 points, or 0.43%,
and Nasdaq 100 e-minis were up 75.5 points, or 0.44%.
Among single stocks, Tesla fell 4.1% before the bell as the
electric vehicle maker cut prices in a number of its major
markets, including China and Germany, following price reductions
in the United States.
Salesforce ( CRM ) rose 3.3% after the business software
maker backed away from its talks to acquire data-management
software firm Informatica ( INFA ) after the two companies could
not agree on terms. Informatica's ( INFA ) shares were down 5.1%.
Verizon Communications ( VZ ) added 1.8% after the telecom
firm said it lost fewer-than-expected wireless subscribers in
the first quarter.