Futures were generally higher in early morning trading on the day after the fall of major indexes due to concerns about the slowdown in global economic growth.
Futures on the Dow Jones industrial average rose 240 points, or 0.7%. S&P 500 futures jumped 0.45%. Futures for the Nasdaq-100 were unchanged.
The yield to ten-year treasury recovered 5 basis points to 1.34%, alleviating concerns about the economic slowdown (1 basis point is 0.01%). The drop in yields has mystified investors lately, with the ten-year yield falling to 1.25% at its lowest level on Thursday.
Shares that led to losses on Thursday led to a pre-sale gain on Friday. Bank of America jumped nearly 2% in early trading, leading to a jump in financial stocks. The Royal Caribbean and Carnival accounted for more than 2%. American Airlines and United Airlines recorded more than 1%.
GM shares rose 2% after Wedbush said the stock is a purchase and could jump more than 50% as investors understand the scope of technology and electric vehicle development.
Big Tech shares were slightly weak in pre-sale as President Biden was due to issue a new executive order aimed at to the competitive practices of the giant sector. Amazon fell about 0.3% after reaching a new all-time high on Thursday.
The losses on Thursday came as the spread of the highly contagious variant of the Covid delta also raised concerns about global economic return. Olimpic games announced a spectator ban at the Tokyo Summer Games while Japan declared a state of emergency to curb the spread of the coronavirus.
“Our main case was intermittent July,” and the S&P 500 fell to just 4,100, wrote Tom Lee, head of research at Fundstratt, in a note for clients Thursday night. “Although it is a possibility, we think there is a chance [Thursday] marked the climax [the] “fear of growth” and if that’s true, stocks may be moving toward wider risk. “
The Dow closed the regular session on Thursday lower by nearly 260 points. The S&P 500 fell 0.86%, while the Nasdaq broke a four-day winning streak with a 0.72% drop.
Within a week, the Dow was down 1.1%, the S&P 500 was down 0.7% and the Nasdaq Composite was down 0.5%.
“The market is solid mid-cycle and with that usually comes an index level correction of 10-15%. We expect such a correction to create buying opportunities given the still strong growth background,” said Mike Wilson, Morgan’s chief U.S. equity strategist. Stanley. clients. Wilson favors finances, healthcare and materials.
“Our economic growth forecasts are still positive, but the bigger bulls are still talking about‘ stopped demand ’,” Wilson added. “We agree that the demand for consumption of services has been maintained. We also believe that the degree of overconsumption of goods and the fees that follow are underestimated, as the positive effects on revenue from stimulus checks and jumping property prices disappear.”
The latest report on unemployment claims released on Thursday also pointed to a potential slowdown in the labor sector as for the first time, claimants for cash benefits unexpectedly jumped to 373,000 in the week ending July 3rd. According to Dow Jones, economists wanted to see 350,000 initial claims.