Stock Market News: Dow Futures Rising at End of Key Earnings Week
Stocks looked set to extend gains on Friday after mostly finishing higher the previous day.
The market is getting a lift from a busy earnings season, economic data, and a slight retreat in bond yields as traders assess how much the Federal Reserve might lower interest rates over the next few months. Thursday’s initial jobless claims came in a little better than expected, and new home sales were also a bit stronger.
Investors will now have the weekend to catch their breath. The biggest event on the horizon is the presidential election on Nov. 5 between former president Donald Trump and Vice President Kamala Harris. Aside from that, new figures on inflation and economic growth are due next week, along with another clutch of earnings from companies including McDonalds, Pfizer, and Exxon Mobil.
“Multiple factors helped to lift sentiment, including some decent earnings reports, upside U.S. data surprises, as well as mounting speculation about faster rate cuts,” said Deutsche Bank analyst Henry Allen. “But even with the modest gain, investors are still very cautious as we approach a pivotal couple of weeks, which will include a raft of earnings reports, the U.S. jobs report next Friday, and then the U.S. election.”
Futures for the Dow Jones Industrial Average were rising 32 points, or 0.1% before the market opened—the Dow was the only one of the three major indexes to decline on Thursday. Contracts tied to the S&P 500 were also up 0.1%, as were futures for the technology-heavy Nasdaq.
Bond yields were easing back somewhat in early trading. The 10-year yield was at 4.192%, compared with about 4.21% yesterday. The two-year note was at 4.07%, virtually unchanged from a day ago.