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US STOCKS-Wall St set to open higher as risk-on sentiment improves
May 9, 2017 / 1:04 PM / 7 months ago

US STOCKS-Wall St set to open higher as risk-on sentiment improves

* VIX closes at lowest level since 1993 on Monday

* Valeant swings to profit, shares surge

* Futures up: Dow 37 pts, S&P 3.25 pts, Nasdaq 7.5 pts (Adds details, comments, updates prices)

By Yashaswini Swamynathan

May 9 (Reuters) - U.S. stocks were poised to open slightly higher on Tuesday, with market volatility at its lowest in more than two decades following Emmanuel Macron’s victory in the French presidential election and strong U.S. corporate earnings.

The VIX, Wall Street’s “fear gauge”, closed at its lowest level since 1993. A low VIX typically indicates a bullish outlook for stocks.

The 10-year U.S. Treasury yield rose to its highest in a month, while gold prices fell, indicating a shift in investor preference for riskier assets.

“Trees don’t grow to the sky so we need to be realistic about the market,” said Eric Aanes, chief executive officer at Titus Wealth Management.

“The risk for the downside is probably increasing every day. Historically, the market is due for a pullback.”

Dow e-minis were up 37 points, or 0.18 percent at 8:36 a.m. ET (1236 GMT), with 17,743 contracts changing hands.

S&P 500 e-minis were up 3.25 points, or 0.14 percent, with 101,861 contracts traded.

Nasdaq 100 e-minis were up 7.5 points, or 0.13 percent, on volume of 18,251 contracts.

Since Donald Trump’s election in November the S&P 500 has risen nearly 14 percent, raising questions about market valuations. However, solid first-quarter earnings could quell some of those fears.

S&P 500 earnings on average have grown 14.4 percent, up from 10.1 percent estimated at the start of the earnings season, according to Thomson Reuters I/B/E/S.

Shares of Valeant Pharmaceuticals jumped more than 16 percent in premarket trading after the company posted its first profit in six quarters.

Endo International, Office Depot and Marriott also rose after reporting better-than-expected quarterly earnings. (Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Anil D‘Silva)

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