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Wall Street set to open higher on strong retail sales data

Posted by: Admin | Posted on: July 15th, 2016 | 0 Comments

The Dow and the benchmark SP 500, trading at record highs, were set to open slightly higher on Friday, after better-than-expected monthly retail sales offset mixed results from Citigroup and Wells Fargo.

U.S. retail sales rose more than expected in June as Americans bought motor vehicles and a variety of other goods, reinforcing views that economic growth picked up in the second quarter.

Citi’s (C.N) second-quarter profit fell less than expected, while Wells Fargo’s (WFC.N) profit fell in line with expectations. Citi shares rose 1.4 percent premarket, while Wells Fargo’s dropped about 1 percent.

The tepid results failed to match up to the expectation set by JPMorgan’s strong numbers on Thursday, that helped power the SP to its fourth intraday high in a row and the Dow to its third.

Dow e-minis 1YMc1 were up 21 points, or 0.11 percent at 8:34 a.m. ET, with 33,027 contracts changing hands.

SP 500 e-minis ESc1 were up 2.75 points, or 0.13 percent, with 232,598 contracts traded.

Nasdaq 100 e-minis NQc1 were up 2.25 points, or 0.05 percent, on volume of 22,077 contracts.

Strong China data helped push world stocks to eight-month highs, but an attack in Nice, France that killed at least 84 people and injured scores weighed on sentiment.

“I am optimistic about the (U.S.) markets today, but we are going to see some reaction to the attack in Nice,” said Robert Pavlik, chief market strategist at Boston Private Wealth in New York.

Following news of the attack, shares of travel operators and airlines dropped on fears about travel to Europe.

Priceline (PCLN.O), Expedia (EXPE.O) and TripAdvisor (TRIP.O) were down 1-2 percent, while Delta (DAL.N), Southwest (LUV.N) and United Continental (UAL.N) were also down 1-2 percent.

Herbalife (HLF.N) jumped 6.6 percent to $63.25 after the weight-loss products maker agreed to pay the FTC $200 million to avoid being classified a pyramid scheme.

(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Savio D’Souza)

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