Stocks are likely to move to the upside in early trading on Friday, extending the recovery from the sell-off seen early in the previous session. The major index futures are currently pointing to a sharply higher open for the markets, with the S&P 500 futures up by 1.0 percent.
The upward momentum on Wall Street comes amid a positive reaction to some of the latest earnings news from big-name tech companies.
Shares of Alphabet (GOOGL) are surging by 11.3 percent in pre-market trading after the Google parent reported better than expected first quarter results and authorized its first-ever dividend as well as a $70 billion stock buyback.
Software giant Microsoft (MSFT) is also seeing substantial pre-market strength after reporting fiscal third quarter results that exceeded expectations.
On the other hand, shares of Intel (INTC) are likely to come under pressure after the semiconductor giant reported first quarter earnings that beat estimates but provided disappointing guidance.
The futures remained firmly positive as closely watched readings on inflation released by the Commerce Department showed consumer prices in the U.S. increased in line with economist estimates in the month of March.
The Commerce Department said its consumer price index rose by 0.3 percent in March, matching the increase seen in February as well as economist estimates.
Excluding food and energy prices, core consumer prices also climbed by 0.3 percent for the second straight month, in line with expectations.
Meanwhile, the report said the annual rate of consumer price growth accelerated to 2.7 percent in March from 2.5 percent in February. Economists had expected the pace of growth to tick up to 2.6 percent.
The annual rate of growth by core consumer prices in March came in unchanged from February at 2.8 percent, while economists had expected the pace of growth to slow to 2.6 percent.
The readings on inflation, which are said to be preferred by the Federal Reserve, were included in the Commerce Department’s report on personal income and spending in the month of March.
After moving sharply lower early in the session, stocks regained ground over the course of the trading day on Thursday but remained mostly lower. The major averages all finished the day in negative territory after ending Wednesday’s trading narrowly mixed.
The Dow slumped 375.12 points or 1.0 percent to 38,085.80 after plunging by more than 700 points in early trading. The Nasdaq slid 100.99 points or 0.6 percent to 15,611.76 and the S&P 500 fell 23.21 points or 0.5 percent at 5,048.42.
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Friday. Japan’s Nikkei 225 Index advanced by 0.8 percent, while Hong Kong’s Hang Seng Index surged by 2.1 percent.
The major European markets have also moved to the upside on the day. While the German DAX Index has jumped by 1.0 percent, the French CAC 40 Index and the U.K.’s FTSE 100 Index are both up by 0.6 percent.
In commodities trading, crude oil futures are advancing $0.74 to $84.31 a barrel after climbing $0.76 to $83.57 a barrel on Thursday. Meanwhile, after inching up $4.10 to $2,342.50 an ounce in the previous session, gold futures are rising $16.90 to $2,359.40 an ounce.
On the currency front, the U.S. dollar is trading at 156.88 yen versus the 155.65 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.0717 compared to yesterday’s $1.0730.
Business News
U.S. Stocks Likely To See Early Strength On Upbeat Alphabet, Microsoft Earnings
2024-04-26 12:54:28
