Friday May 28th

28-05-2021

Dow futures jump 170 points as stocks head for a winning week

U.S. stock index futures climbed on Friday and markets headed for a winning week amid growing optimism over the U.S. economic recovery. Futures for the Dow Jones Industrial Average gained 168 points, or 0.5%. The move pointed to an opening gain of about 185 points. S&P 500 futures rose 0.4% and Nasdaq-100 futures added 0.3%. The S&P 500 is up 1.08% week to date and sits less than 1% from a record. The blue-chip Dow is 0.75% higher over the same time period, while the Nasdaq has gained nearly 2%. Salesforce shares rose about 4% in premarket trading after the software company’s first-quarter earnings beat Wall Street expectations on its top and bottom lines. HP shares dropped 5% despite the company’s better-than-expected second-quarter results. Ford was higher once again, up 1% in premarket trading Friday. The stock is up 11% this week so far after unveiling a new electric vehicle strategy. A key inflation indicator — the core personal consumption expenditures index — rose 3.1% in April, faster than expectations of a 2.9% increase but not as hot as many on Wall Street had feared. Meanwhile, the savings rate remained elevated at 14.9% last month, while consumer spending rose 0.5%, in line with estimates. Meme stocks fueled by traders in Reddit’s WallStreetBets forum surged on Thursday, with AMC shooting up as much as 47%. Shares of the movie-theater chain closed 35.6% higher while another meme stock, GameStop, gained 4.8%. AMC was up another 10% in premarket trading Friday. The moves higher this week come as investors monitor the back-and-forth in Washington over a comprehensive infrastructure package that could further boost the economic recovery. Senate Republicans unveiled a $928 billion infrastructure counteroffer to President Joe Biden on Thursday. However, that’s well below Biden’s most recent proposal of $1.7 trillion. For the month of May, the S&P 500 is essentially flat, while the Dow is up 1.7%. The Nasdaq is off by about 1.6%. Stocks in Asia-Pacific mostly rose in Friday trade, as investors reacted to the market debut of JD Logistics in Hong Kong. The broader Hang Seng index in Hong Kong closed fractionally higher at 29,124.41. In Japan, the Nikkei 225 jumped 2.1% to close at 29,149.41 while the Topix index advanced 1.91% to 1,947.44. South Korea’s Kospi edged 0.73% higher to end the trading day at 3,188.73. Mainland Chinese markets lagged as they closed lower, with the Shanghai composite declining 0.22% to 3,600.78 while the Shenzhen component dipped 0.297% to 14,852.88. Oil prices pushed higher on Friday, supported by firm U.S. economic data and expectations of a strong rebound in global fuel demand in the third quarter, while concerns eased about the impact of any return of Iranian supplies. Brent crude futures for July gained 16 cents, 0.2%, to $69.62 a barrel by 0050 GMT while U.S. West Texas Intermediate crude for July was at $67.17 a barrel, up 32 cents, or 0.5%. Gold prices stayed subdued on Friday, hurt by a firm dollar and higher U.S. Treasury yields, while investors wait for U.S. personal consumption data later in the day, the Fed’s preferred inflation gauge. Spot gold fell 0.3% to $1,890.90 per ounce by 1133 GMT. U.S. gold futures slipped 0.2% to $1,891.50.