By Shreyashi Sanyal
(Reuters) – Travel and leisure shares propped up U.S. stock index futures after China relaxed some COVID-19 quarantine requirements for international travelers, raising hopes of a revival in global growth.
Airlines, cruises, casinos and hotels were among the gainers in premarket trading after China’s slashing of the quarantine time for inbound travelers by half boosted hopes of a big jump in international travel and spending.
Shares of Walt Disney Inc rose 2.5% to top the list of gainers on the Dow Jones Industrial Average, after the company’s Shanghai Disney Resort said it would reopen the Disneyland theme park on June 30 after being shut for more than three months.
Spirit Airlines and American Airlines Group Inc were the biggest gainers in the sector, rising 4% and 2% respectively.
Melco Resorts jumped 10% and led the rise in the casino sector, closely followed by Wynn Resorts, MGM Resorts International.
Wall Street’s main indexes started the week on soft footing after worries of surging inflation and an aggressive Federal Reserve dominated sentiment amid few market moving catalysts till the start of earnings season in two weeks.
Investors are now looking at data to determine whether the economy can withstand large interest rate hikes by the U.S. central bank to stamp out inflation.
A survey from the Conference Board is expected to show its consumer confidence index slipped to a reading of 100.4 in June, from 106.4 in May, at 10 a.m. ET.
The S&P 500 and the Nasdaq are set to post losses in June and are on course to log two straight quarterly declines for the first time since 2015.
At 6:49 a.m. ET, Dow e-minis were up 175 points, or 0.56%, S&P 500 e-minis were up 20 points, or 0.51%, and Nasdaq 100 e-minis were up 52.25 points, or 0.43%.
Nike Inc shed 2.8% as it forecast first-quarter revenue below estimates on expectations of more discounts and pandemic-related disruptions in China, its most profitable market.
Occidental Petroleum Corp climbed 3.1% after top investor Warren Buffett raised stake in the shale producer.
China ADRs also rose on Beijing easing its COVID curbs, with e-commerce firms Alibaba.com, JD.com and Pinduoduo up between 1.2% and 1.4%
(Reporting by Shreyashi Sanyal and Amruta Khandekar in Bengaluru; Editing by Anil D’Silva)
