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S&P 500, Nasdaq set to rise at open as focus turns to factory surveys

The front facade of the New York Stock Exchange (NYSE) is seen in New York City, New York, U.S., June 26, 2020. (REUTERS/Brendan McDermid)

BY MEDHA SINGH AND DEVIK JAIN

The S&P 500 was looking at a higher open on Tuesday, with the tech-heavy Nasdaq on track to scale a new peak as Apple climbed and positive manufacturing sector surveys in China and Europe set the tone for upcoming U.S. factory activity data.

Apple Inc rose 2.6% premarket, rising for the second day after its stock split took effect, as a report said the iPhone maker had asked suppliers to make at least 75 million 5G iPhones for later this year.

Global stocks started September on a positive note after China’s factory activity showed expansion at the fastest clip in nearly a decade in August and eurozone output also stayed strong last month, strengthening views of an economic rebound.

ISM survey data at 10 a.m. ET (1400 GMT) is likely to show U.S. manufacturing activity expanded slightly last month after hitting a 1-1/2 year high in July.

Investors will keep a close watch on the monthly U.S. jobs report due on Friday amid signs the labor market’s recovery is stalling.

Wall Street’s main indexes recorded their fifth straight monthly gain on Monday, riding massive central bank support, U.S. government aid and demand for tech-focused stocks.

“Investors are continuing to reward the ability to innovate and adapt… not just to the tech companies, but those companies that are in other industries that have been good users of technology,” said Stephen Lee, portfolio manager at Logan Capital Management in Newtown Square, Pennsylvania.

The Nasdaq and the S&P 500 have scaled all-time highs recently, but the blue-chip Dow is still about 4% below its February peak.

Treasury Secretary Steven Mnuchin’s comment that a new coronavirus relief bill will “hopefully” be unveiled next week also boosted sentiment.

U.S. politics will take center stage in the coming weeks. Republican president Donald Trump, who is running for re-election against Democratic presidential nominee Joe Biden, has seen his polling gap with the former vice president narrow recently.

At 8:22 a.m. ET, S&P 500 e-minis were up 6.75 points, or 0.19% and Nasdaq 100 e-minis were up 105.5 points, or 0.87%. Dow e-minis were down 30 points, or 0.11%.

Among other stocks, Zoom Video Communications Inc surged 35.4% after the video-conferencing platform raised its annual revenue forecast by more than 30% as it converted more of its huge free user base to paid subscriptions.

Walmart Inc rose 2.6% after the retail giant unveiled the perks of its new loyalty program, Walmart Plus, which will grant subscribers unlimited free delivery, fuel discounts and no checkout lines.

Tesla Inc pared gains to 2.1% after the electric-car maker announced plans to raise up to $5 billion through a share sale program a day after its 5-for-1 stock split.

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