The US stock market is expected to opne in green on Friday, October 9 as stock futures gained as oil prices slipped, while chip stocks recovered.
Along with these global cues, several stocks moved sharply in premarket trade due to company specific developments, with shares of Humana, Space X gaining, while Verizon, T Mobile and AT&T declining.
Humana shares advanced 14.4% to $443.23 in premarket after the insurer received Medicare Star Ratings' most favourable assessment, with Evercore describing the ratings a "big positive" for the company, reporst said. The company biggest plan, H5216, received 4-star rating, bringing its total membership in 4-star or higher plans to 93%.
SpaceX shares gained 3.9% after the Elon Musk led company inked a deal on Thursday to acquire a nationwide low-band spectrum portfolio. SpaceX will pay around $8 billion in cash for the assets to the seller, private-equity firm Grain Management, the Wall Street Journal reported.
US telecom stocks traded sharply lower after SpaceX spectrum deal to push into the wireless market, raising fears of tougher competition for established operators. Telecom stocks such as T Mobile shares decline 6.5%, followed by Verizon, down 5.9%, while AT&T traded 5.6% lower.
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What to expect from US market?
Wall Street is expected to open in green today as Nasdaq futures rose 0.85% to 31,231.25, S&P 500 traded 0.43% up at 7,849.75, while Dow Jones Industrial Average futures gained 0.22% to 51,606 by 3:17 pm IST. This comes as Brent crude slipped below $103 a barrel after President Donald Trump said the US does will not attack Iran before the midterm elections. He also hinted at “productive discussions” with Tehran. The benchmark hit a two-week high in the previous session amid concerns of an escalation of tensions in the Middle East. On Thursday, crude oil prices surged as Iran attacked on tankers transiting the Strait of Hormuz, a critical route for global oil shipments, reports said. Additionally, Hurricane Isaias warned offshore oil production in the Gulf of Mexico, adding to concerns over supply disruptions.
Meanwhile, Treasury yields remained unchanged on Friday after hitting multi year highs as traders reviewed President Donald Trump's decison to not attack Iran till the midterm elections. 10-year US Treasury yields stood at 5.23%, while yield on longer-dated 30-year note, which typically moves on geopolitical events was unchanged at 5.61%. The two-year Treasury yield, was up over 2 basis points at 4.78%.
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