US Stock Market

US Stock Index Futures Inch Higher after Snapping 3-Day Losing Streak

The major U.S. stock index futures contracts are inching higher in the early trade on Friday after posting a strong recovery the previous session. Yesterday’s rally, which was led by the technology sector, broke a three-day losing streak.

At 08:12 GMT, June E-mini S&P 500 Index futures are trading 4158.75, up 4.50 or +0.11%. June E-mini Dow Jones Industrial Average futures are trading 34045, up 17 or +0.05% and June E-mini NASDAQ-100 Index is at 13513.25, up 26.75 or +0.20%.

Lower Yields Provide Some Support

Helping to boost the U.S. stock market, U.S. Treasury yields fell on Thursday as investors digested comments from the U.S. Federal Reserve, suggesting it might taper its asset purchases if the economy continues to recovery rapidly.

The yield on the benchmark 10-year Treasury note dropped roughly five basis points to 1.634% in afternoon trading. The yield on the 30-year Treasury bond fell to 2.343%.

The 10-year Treasury yield topped 1.68% in the previous session, after minutes from the Fed’s April meeting showed the central bank would reconsider its easy monetary policy if the economy continued to rapidly improve.

Lower Weekly Claims Spark Rebound Rally

The smallest weekly jobless claims since the start of a pandemic-driven recession lifted investor sentiment.

The number of Americans filing for new claims for unemployment benefits fell to 444,000 in the week-ended May 15, down for the third straight time, suggesting job growth picked up this month, though companies still are desperate for workers.

Sectors and Stocks

The technology sector led the gains, but they may have been limited by weakness in the retail sector.

Tech-related companies like Microsoft, Facebook and Alphabet all rose more than 1% while Netflix and Apple rallied more than 2% each.

Home Depot shares rose 0.66% in extended trading Thursday after the retailer announced a new $20 billion share buyback program. Home Depot’s announcement came after the company reported first-quarter earnings and revenue Tuesday crushing analysts’ expectations.

While Home Deport was providing support, other retailers were a weak spot. Ralph Lauren Corp dropped 7.01% after it forecast full-year sales below analysts’ estimates, making it the largest percentage decliner on the S&P 500 Index.

Kohl’s Corp slumped 10.17% after warning of a hit to its full-year profit margin from higher labor and shipping costs, as well as selling fewer products at full price.

Looking Ahead…

On Friday, the U.S. will report Flash Manufacturing PMI. It is expected to come in at 60.0, down slightly from the previously reported 60.5.

Flash Services PMI is expected to have risen 64.3, down from 64.7.

Existing Home Sales are predicted to have risen by 6.09 million units, up slightly from 6.01 million units.

For a look at all of today’s economic events, check out our economic calendar.

Published by

James Hyerczyk

James A. Hyerczyk has worked as a fundamental and technical financial market analyst since 1982. His technical work features the pattern, price and time analysis techniques of W.D. Gann.