The market mood appears to be cautiously optimistic, as signaled by the index futures, which pointed to a narrowly mixed start on Friday. Former President Donald Trump has been indicated by the Manhattan grand jury throwing in some uncertainty into the market. Traders could also closely watch the inflation data that is part of the government’s personal income and spending data.
Cues From Thursday’s Trading:
The major averages closed uniformly higher on Thursday, as traders digested data showing an increase in jobless claims, a rally in oil prices and a modest pullback in bond yields.
The major averages gap opened higher and went through a consolidation move before buying interest picked up pace in late trading. The Nasdaq settled at the highest level in more than a month and the S&P 500 Index reclaimed the 4,000 level, with the broader average and the Dow Industrials ending at a three-week high.
The averages opened higher, although they trimmed their gains by the mid-session, with the Dow Industrials dipping briefly below the unchanged line. They regained some of the lost ground by the close, although ending off the highs of the session.
The Nasdaq Composite and the S&P 500 indices closed at their highest levels in more than a month and a half.
Most sectors, except for financial stocks, advanced in the session, with real estate, IT and consumer discretionary stocks leading the gains.
| Index | Performance (+/-) | Value | |
|---|---|---|---|
| Nasdaq Composite | +0.73% | 12,013.47 | |
| S&P 500 Index | +0.57% | 4,050.83 | |
| Dow Industrials | +0.43% | 32,859.03 |
Analyst Color:
The recent market rally underpins the thesis of the bulls that “the market, above all else, is about price action rather than the ever-expanding ledger of worries, said Quincy Crosby, chief global strategist at LPL Financial said. “Still, economic concerns enveloping recession fears haven’t vanished as the yield curve still represents a counter to the market’s climb higher,” the analyst said. The analyst expects the pull between the bears and bulls to be resolved, with more inflation-related data to be released, and the advent of the first-quarter earnings season in a couple of weeks. “Sometimes it’s best to let both sides of the debate to duke it out, but for now price action is indicating that the wall of worry isn’t as tall and strong as the headlines suggest,”
Futures Today
| Index | Performance (+/-) | |
|---|---|---|
| Nasdaq 100 Futures | -0.09% | |
| S&P 500 Futures | +0.17% | |
| Dow Futures | +0.26% | |
| R2K Futures | +0.89% |
In premarket trading on Friday, the SPDR S&P 500 ETF Trust(NYSE:SPY) climbed 0.17% to $404.38 and the Invesco QQQ Trust(NASDAQ:QQQ) moved down 0.07% to $315.46, according to Benzinga Pro data.
Upcoming Economic Data:
The Bureau of Economic Analysis will also release the personal income and spending report for February at 8:30 a.m. EDT. The two metrics are expected to show monthly growth rates of 0.2% and 0.3%, respectively. In January, personal income and spending climbed 0.6% and 1.8%, respectively. The annual rate of the core price consumption expenditure index is expected at 4.7%, the same pace as in the previous month. This reading is Fed’s preferred inflation gauge that guides its decisions.
The University of Michigan’s revised consumer sentiment data for March will be released at 10 a.m. EDT. Economists, on average, expect the headline index to be revised down from the preliminary reading of 63.4 to 63.2. In February, the index was at 67.
The Chicago Fed is scheduled to release its regional business barometer index at 9:45 a.m. EDT. The index for March is expected to come in at 43.4, down from 43.6 in the previous month and underlining continued contraction in business activity.
The Dallas Federal Reserve’s price consumption index data is due at 12:05 p.m. EDT.
New York Fed President John Williams, a Federal Open Market Committee member, will make a public appearance at 3:04 p.m. EDT.
See also: How To Trade Futures
Stocks In Focus:
- Digital World Acquisition Corp. (NASDAQ:DWAC), the SPAC which has agreed to merge with Trump’s Truth Social parent, climbed 9.11% in premarket trading, potentially on the news of the former president’s indictment. Rumble Inc. (NYSE:RUM) rallied over 15%.
- EV Maker Canoo, Inc. (NASDAQ:GOEV) fell over 3.60% after the company reported fourth-quarter results and also announced a $1.5 million settlement with the SEC.
- Nikola Corp. (NASDAQ:NKLA) fell over 5.70% after the beleaguered EV truck maker announced a common stock offering.
- BlackBerry Limited (NYSE:BB) moved down over 4% in reaction to its quarterly results.
Top Analysts’ Call
- JD.com, Inc. (NASDAQ:JD): Loop Capital downgrades from Buy to Hold and cuts price target from $49 to $82
- Restraurant Brands International, Inc. (NYSE:QSR): TD Cowen upgrades from Market Perform to Outperform and increases price target from $72 to $75
- Nvidia Corp. (NASDAQ:NVDA): Tigress Financial reiterates at Buy and increases price target from $250 to $320
Commodities, Bonds, Other Global Equity Markets:
Crude oil futures rose 0.35% to $74.63 a barrel on Friday, adding on to its 1.92% rally on Thursday.
The yield on the benchmark 10-year Treasury ticked up 0.024 percent points to 3.575%.
Most Asian markets gained on Friday, encouraged by Wall Street’s advance overnight. New Zealand, Indonesian and Malaysian markets saw small declines. The Indian market, which opened after Thursday’s public holiday, was the biggest gainer in the region.
Economic data from the region were mixed, with Japan’s industrial production rebounding and inflation showing a letup in pressure. China’s manufacturing activity slowed in March, while non-manufacturing activity accelerated.
European stocks were higher for a fifth straight session, with sentiment getting a lift from inflation data from France and the eurozone. Eurostat data showed the eurozone’s inflation slowed in March but the core reading surged to a record high.
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