Wall St set to open higher after retail sales data; Fed decision on tap
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Microsoft gains after new share buyback plan, dividend hike
Intel jumps following collaboration with Amazon's AWS
Retail sales rise 0.10% in August
Futures up: Dow 0.30%, S&P 500 0.40%, Nasdaq 0.65%
Updated at 08:41 a.m. ET/1241 GMT
By Johann M Cherian and Purvi Agarwal
Sept 17 (Reuters) -Wall Street's main indexes were set to open higher ahead of the Federal Reserve's monetary policy meeting, which startson Tuesday, after data signaling ahealthy consumer allayed worries of asharp slowdown in the U.S. economy.
A Commerce Department reportshowed retail sales rose 0.10% in August compared to an estimate of a 0.20% decrease, according to economists polled by Reuters, and a1.1% increase inthe previous month.
Rate-sensitive growth stocks such as Alphabet GOOGL.O and Tesla <TSLA.O> added 0.78%and 0.83%,respectively, in premarket trading, while Nvidia NVDA.O rose 1.30%.
The yield on two-year Treasury bonds US2YT=RR hovered near levels last seen more than a year ago. US/
Microsoft MSFT.O also rose 2.0% on the day after the AI-frontrunner's board approved a new $60-billion share buyback program and hiked its quarterly dividend by 10%.
At 08:41 a.m. ET, Dow E-minis 1YMcv1 were up 125 points, or 0.30%, S&P 500 E-minis EScv1 were up 22.75 points, or 0.40%, and Nasdaq 100 E-minis NQcv1 were up 127.25 points, or 0.65%.
Fed officials are scheduled tostart their two-day meeting and traders are betting on a 67% probability that theworld's most influential central bank will decide to lower borrowing costs by a bigger 50 basis points, according to the CME Group's FedWatch Tool.
Odds favoring a smaller 25 bps reduction stand at 33% from 66% a week earlier, as investors focused on remarks from a former policymaker supporting an outsized move and signs of a cooling labor market, among other indicators.
"Retail sales being higher is suggestive that the economy is modestly better," said Michael Green, chief strategist and portfolio manager at Simplify Asset Management.
"I would say that the actual underlying data is relatively mixed and markets are in a bit of a holding pattern, waiting for (Chair Jerome) Powell and the Federal Reserve tomorrow."
The Dow .DJI closed at a record high and the S&P 500 .SPX ended its sixth straight session higher and near a record high in the previous session,helped by gains in Financials .SPSY and Energy .SPNY stocks.
However, the Nasdaq .IXIC ended the session lower as investors rotated away from techstocks .SPLRCT, which have spearheaded muchof this year's rally.
September has historically been weak for U.S. equities, with the benchmark S&P 500 down about 1.20% for the month on an average since 1928. The index has lost about 0.30% so far this September.
Still, a survey of BofA fund managers showed global investor sentiment improved in September 2024 for the first time since June, on optimism around a soft landing and rate cuts by the U.S. central bank.
Among other movers, Intel INTC.O jumped 6.7% after signing Amazon.com's AMZN.O cloud services unit as a customer to make custom artificial-intelligence chips.
Viasat VSAT.O dropped 2.4% after brokerage J.P.Morgan downgraded it to "neutral" from "overweight". Hewlett Packard Enterprise HPE.N gained 3.8% after BofA Global Research upgraded the server maker to "buy" from "neutral".
SolarEdge SEDG.O fell 5.2% after Jefferies downgraded the solar inverter maker to "underperform" from "hold" and slashed its price target to the lowest on Wall Street.
Reporting by Johann M Cherian in Bengaluru; Editing by Pooja Desai
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