U.S. stock-index futures on Friday looked set to open higher, and finish a week with sharp gains, shaking off worries about slowing global growth, notably in China. Stocks will also be affected by Friday’s quadruple witching, the simultaneous expiration of stock-index futures and stock-index options, as well as individual stock futures and options.
How did major indexes fare?
Futures for the Dow Jones Industrial Average YMM9, +0.49% were up 132 points, or 0.5%, at 25,842, while the S&P 500 index futures ESM9, +0.44% climbed 12.95 points, or 0.5%, at 2,823. Nasdaq-100 futures NQM9, +0.54% advanced 42 points to 7,309.25, a gain of 0.6%.
On Thursday, the Dow DJIA, +0.03% rose 7.05 points to 25,709.94, a gain of less than 0.1%. The S&P 500 index SPX, -0.09% slipped 2.44 points to 2,808.48, finishing little changed, and the Nasdaq Composite Index COMP, -0.16% shed 12.50 points, or 0.2%, to 7,630.91.
For the week, the Dow is set for a weekly gain of 1%, while the S&P 500 is set for a weekly gain of 2.4%, and the Nasdaq has risen 3% thus far in the week, as of Thursday’s close. The gains would mark the biggest weekly gain since the period ended Feb. 15, according to FactSet data.
What are benchmarks doing?
Gains for equities on Friday come as Chinese Premier Li Keqaing, Beijing’s No. 2 leader after President Xi Jinping, expressed optimism that a trade deal between China and the U.S. can be achieved that suits both parties.
He also denied accusations that the country used its technology to spy on other countries, attempting to lay to rest one of the key issues that stand between the U.S. and China in a trade agreement.
“This is not how China behaves. We did not do that and will not do that in the future,” Li said in translated remarks at the conclusion of the National People’s Congress on Thursday.
He added that the parties may be several weeks away from a tariff agreement, but described China as “very responsible and reasonable.” Separately, U.S. Treasury Secretary Steven Mnuchin, speaking to reporters after his Senate testimony in front of a finance committee said no date had been set for a meeting between Xi and Trump to complete a deal, adding that “there’s still a lot of work to do.”
Bloomberg News a day ago said a meeting that had tentatively been penciled in for the end of March would be pushed back to April.
Trade talks between the two of the globe’s largest economies has been chief among concerns for investors because an heated war between the two have the potential to hurt economies world-wide.
Meanwhile, the Bank of Japan left interest rates unchanged, as expected, while also maintaining purchases of Japanese government bonds.
Separate from its comments on trade, China’s Li underscored weakness in the world’s second-largest economy and promised implementation of ways to boost it, including cutting interest rates and banks’ reserve requirement ratio.
Which data are in focus
At 8:30 a.m. Eastern Time, the Empire state manufacturing index for March is set to be released, while readings on industrial production and capacity utilization for February are scheduled to come out at 9:15 a.m., while a report on job openings and consumer sentiment will be released at 10 a.m.
What are strategists saying?
Pierre Veyret, technical analyst at ActivTrades said “this risk-on sentiment was mainly built on ground of a widespread optimism following President Trump’s recent statement about a ‘very responsible and reasonable China’. The U.S. President also added he will have news on a China trade deal in the next 3-4 weeks and that could lead to an extension of this year’s rally on stocks.”
“Its quadruple options expiration day, which is likely to cause a swelling of volume and volatility,” wrote Peter Cardillo, chief market economist at Spartan Capital Securities.
Which stocks are in focus?
Shares of Facebook Inc. FB, -1.85% were under pressure in premarket action, after the social media firm said that two senior executives were leaving the company. The stock is down 1.7% before the bell. Shares fell 1.9% Thursday, on news that the a grand jury is undertaking a criminal investigation into the company’s data sharing practices.
Shares of Broadcom Inc. rose 5.2% in premarket trade after chip maker reported fiscal first-quarter earnings Thursday evening that surpassed expectations.
Shares of Ulta Beauty Inc. ULTA, -0.93% rallied 4.9% before the bell, after the beauty-products retailer reported fiscal fourth quarter results Thursday evening that surpassed expectations, while showing an increase in online sales.
Newell Brands Inc. NWL, -0.13% shares were in focus after chief executive officer Michael Polk said Thursday evening that he would retire from the company at the end of the second quarter. The stock rose 2.3% in premarket trade Friday.
Shares of Oracle Corp. ORCL, -0.02% fell 3.7% before the bell, following a Thursday-evening report that showed the enterprise-software company beating earnings estimates for the fiscal third quarter that surpassed expectations and an outlook that matched forecasts.
How are markets trading elsewhere?
European stocks were also on the rise, with the Stoxx Europe 600 SXXP, +0.54% adding 0.7%.
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