Stock Futures Rise With Wall Street on Course for Weekly Gain

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Based on Thursday’s close, all three major US indices are up 3.4% or more for the week

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All three major indices are up in Friday’s session with solid gains for the week, a sharp reversal from the tiring stretch of weekly losses. Last week, the Dow fell for the eighth consecutive week, its longest streak since 1932, while the S&P 500 and Nasdaq Composite lost seven weeks. This week, however, all three indices are up 3.4% or more based on Thursday’s close.

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Some investors and strategists are ready to sell from the bottom which has sent the benchmark S&P 500 falling 15% for the year. Still, many said this week’s gains felt like an almost constant batting of the portfolio. Many pointed to strong earnings this week as reason for optimism, with stores like Macy’s and Dollar Tree reporting strong sales growth. Deep selling in some stocks has made valuations more attractive, encouraging some investors to buy in the fall.

Still, some of the fundamental factors that made the stock fall this year have changed. The Federal Reserve is still on pace to continue raising interest rates aggressively this year to counter rising inflation, raising concerns that the action will eventually propel the US economy into recession. Meanwhile, the Kovid-19 lockdown in China and the war in Ukraine have exacerbated the supply-chain crisis. For several weeks, investors have been digesting disappointing earnings results and data, which added to the gloomy picture of the economy.

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Later Friday morning, investors will analyze data, including consumer spending, to get a better gauge of how US consumers are feeling. Trading volumes may remain light on Friday ahead of US Holiday Weekend.

In early New York trading, shares of Dell Technologies were up 12% after reporting increased profit and declining some operating expenses. Ulta Beauty climbed 8% after the retailer increased its full-year sales and earnings guidance after better first-quarter results.

Gap shares fell 16% following the retailer’s loss amid a drop in net sales. Shares of human resources cloud-software company Workday fell 8.4% after reporting first-quarter adjusted earnings that fell short of expectations.

The yield on the benchmark 10-year US Treasury note fell to 2.750% on Friday from 2.756% on Thursday in the bond market. Yields and prices move in opposite directions.

Oil prices rose 0.5% to $114.72 a barrel in line with international benchmark Brent crude.

The dollar lost ground again. The Businesshala Dollar Index, which measures the greenback against a basket of 16 currencies, fell 0.2%, extending recent losses. The Russian ruble fell 3.2% against the dollar, extending its decline for another day after the country’s central bank cut interest rates.

Overseas, Hong Kong’s Hang Seng up 2.9% led by Alibaba shares,

Which jumped 12% after posting earnings that beat analysts’ expectations. Japan’s Nikkei 225 rose 0.7%. Shanghai Composite rose 0.2%. In Europe, the pan-continental stokes Europe 600 gained 0.6%.

Write to Caitlin McCabe at [email protected]

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