Friday May 21st

21-05-2021

Stocks are set to rise for a second day with Dow futures up 160 points

U.S. stock index futures rose for a second day on Friday as major averages attempt to claw back their losses from earlier in the week. Futures on the Dow Jones Industrial Average indicated an opening gain of about 160 points. S&P 500 futures rose 0.4% and Nasdaq-100 futures added 0.4%. Bitcoin, which shook markets earlier in the week with a 30% collapse, was stable for a second day around the $40,000 range. Major technology shares were set to continue their rebound. Tesla was higher by 2% in premarket trading. Gains were broad across sectors early Friday. Cruise lines gained after Carnival said some brands would resume cruises in July. Carnival added 1% in premarket trading. Ford, which said Thursday it has 20,000 reservations for its new electric F-150 pickup, gained 1.7% in early trading. Home Depot shares rose 0.7% after the retailer announced a new $20 billion share buyback program. In another sign of market confidence, new IPO Oatly, which jumped 18% on Thursday in its Nasdaq debut, was up 6% in premarket trading on Friday. The move in futures followed a comeback day on Wall Street with the Dow gaining 186 points and the S&P 500 and Nasdaq composite ending the day 1.06% and 1.77% higher, respectively. Microsoft, Facebook and Alphabet all rose more than 1% while Netflix and Apple rallied more than 2% each. Shares of Tesla and other speculative parts of the market bounced back as bitcoin prices recovered after a rollercoaster session Wednesday. A new pandemic-low in jobless claims also helped sentiment on Thursday. Thursday’s “jobless claims improvement furthers our view the disappointing April jobs report was likely a blip rather than a sign of deceleration, and we anticipate meaningful labor market improvement in coming months,” said Scott Ruesterholz, a portfolio manager at Insight Investment. Despite Thursday’s rebound, the Dow is down 0.9% in the past week, on track to see its fourth negative week out of the past five weeks. The S&P 500 is 0.4% lower on the week, on pace for its second negative week in a row. The Nasdaq Composite is up 0.8%, positioned to break a 4-week losing streak. Shares in Asia-Pacific were mixed on Friday following an overnight bounce on Wall Street. The Taiex in Taiwan jumped 1.62% on the day to 16,302.06. India’s Nifty 50 also saw robust gains, rising 1.3%, as of about 1:47 p.m. local time. Mainland Chinese markets closed lower, with the Shanghai composite down 0.58% to 3,486.56 while the Shenzhen component slipped 0.809% to 14,417.46. In Hong Kong, the Hang Seng index closed little changed at 28,458.44. Japan’s Nikkei 225 rose 0.78% to close at 28,317.83 while the Topix index gained 0.46% to end the trading day at 1,904.69. South Korea’s Kospi closed 0.19% lower at 3,156.42. Oil prices nudged up on Friday, recovering from three days of losses as investors braced for the return of Iranian crude supplies after officials said Iran and world powers made progress on talks to revive a 2015 nuclear deal. Brent crude futures for July rose 81 cents, or 1.24%, to $65.94 per barrel, while U.S. West Texas Intermediate for July was at $62.87 a barrel, up 93 cents, or 1.5%. Gold held steady on Friday en route to a third straight weekly gain, supported by a weaker U.S. dollar and subdued Treasury yields as concern receded over tapering by the U.S. Federal Reserve. Spot gold was little changed at $1,876.70 an ounce by 0914 GMT and was up 1.9% on the week. U.S. gold futures fell 0.2% to $1,877.90.