Traders and financial professionals work on the floor of the New York Stock Exchange.
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Futures on the stock market rose on Friday as major averages tried to record their fourth consecutive day of gains, overcoming concerns about economic growth earlier in the week.
Dow Jones industrial average futures rose 202 points or 0.5%. S&P 500 futures rose 0.4%. Futures for the Nasdaq 100 climbed about 0.3%.
The 10-year treasury yield it rose to 1.3% on Friday, easing concerns about the economy launched by the bond market on Monday. The ten-year yield fell to a five-month low of 1.13% earlier this week.
“We expect markets to remain turbulent, but a fundamental justification for more aggressive sales is lacking,” Barclays strategists wrote in a note to clients. “In fact, Tuesday’s strong jump shows the animal spirits are intact.”
Strong earnings from technology stocks made investors optimistic ahead of reports of the biggest names in the sector next week. Twitter i Snap each jumped on Thursday after reports of better-than-expected earnings in the second quarter. Twitter traded more than 4% in presale, while Snap rose 17%.
Facebook earned 3% in presale on the results of its competitors on social media. Alphabet added about 1%. Both are reporting next week, along with Apple, Microsoft and Amazon.
In the meantime, American Express reported quarterly results better than expected on Friday morning, boosting its shares by about 3.5% in presale sales. Honeywell he also reported strong earnings, although his stock was down slightly.
Stocks Kimberly-Clark falling by almost 4% after earning reports in line with Wall Street forecasts. He also lowered his forecast for the year, citing higher costs and smaller quantities.
Major US indices have closed Regular trading on Thursday more to achieve a three-day winning streak. The Dow rose 25.35 points, or 0.07%. The S&P 500 climbed 0.2% more. The technically heavy Nasdaq Composite led the markets with an increase of 0.36%.
All three U.S. stock averages are rapidly ending the week in the green, bouncing off last week’s losses i Sharp sales on Monday. The Dow fell more than 700 points to start the week as yields fell, upsetting equity investors about the economy.
Now the average starts on Friday with an increase of 0.4% for the week and returns to 1% of the new record. The S&P 500 was up 0.9% for the week and the Nasdaq Composite was up 1.8%. Both are also within 1% of records.
Technical actions took the lead on Thursday and it seemed that they would repeat it on Friday. Microsoft had the most positive impact on the S&P 500 and Nasdaq on Thursday; shares closed 1.7%. Salesforce had the biggest positive impact on the Dow as the software stock rose 2.6% on Thursday.
Power in technology shares also comes with the continuous spread of the highly addictive variant of delta Covid.
“We’ve seen during the depths of the pandemic that technology stocks and their earnings are holding up best, so I think a lot of investors are coming back to the well, given that we have a revival in Covid,” Yung-Yu Ma, chief investment strategist at BMO Wealth Management – In, he said. “Long-term interest rates that go down as much as they make those stocks more attractive.”
Overall, the stock market has strengthened a strong earnings reporting season. With a quarter of the S&P 500 already reported, profit growth for the second quarter is expected to reach 76%, according to Refinitive, the best growth since 2009. And profit margins remain amid rising inflation. So far for the second quarter, companies are reporting an average profit margin of 12.8%, according to S&P Global, above historical range.