Market News

US pre-open: Stocks to edge up as Broadcom boosts Nasdaq

07/12/2017 10:58

(ShareCast News) - US futures pointed a mostly higher open on Wall Street on Thursday after technology shares recovered in the previous session, with earnings from Broadcom to lend support to the Nasdaq. At 1140 GMT, Dow Jones Industrial Average futures were down 0.1%, but S&P 500 and Nasdaq futures were up 0.1% and 0.3% , respectively. Oanda analyst Craig Erlam said: "US futures are pointing to a slightly higher open on Thursday, as yesterday's rebound in tech stocks gave the impression that the buy the dip mentality remains in play." Last week, the House and Senate passed their own versions of the tax reform bill and now both need to agree on a final bill for President Donald Trump to sign. Late on Wednesday, the Republican-led Senate agreed to begin formal negotiations with the House, sparking hopes that the final tax overhaul will be done by the self-imposed deadline of 22 December. Erlam said: "There is some optimism that a plan that could pass in the House and the Senate could be agreed by the end of the year, although time is running out.

As ever, there are other political distractions when it comes to Trump - North Korea, Russian links investigation and now Jerusalem - but as it stands these are having minimal impacts on the market, although each have the potential to should they take a negative turn." In corporate news, shares in chip maker Broadcom rallied in pre-market trade after it reported better-than-expected earnings late on Wednesday. Power supply provider Digital Power surged before the opening bell amid talk of a deal with online retailer Amazon.com.

However, the company said late on Wednesday that it had "entered into no agreement and has received no order from Amazon". Citigroup was set to be active after saying a day earlier that profits are likely take a $20bn hit under the new tax plans passed by Congress. Dollar General was due to report earnings ahead of the open. Elsewhere, investors will be eyeing introductory remarks from president of the Federal Reserve Bank of New York, William Dudley, at an event later in the day. On the data front, initial jobless claims are due at 1330 GMT.

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