Dow futures rise greater than 100 factors aided by Nike features, main inflation report forward
US stock futures rose in overnight trading on Thursday after the S&P 500 closed on a record.
Dow futures rose 137 points. S&P 500 futures and Nasdaq 100 futures were both in slightly positive territory.
Nike stock rose 14.1% in expanded trading after the company reported earnings of 93 cents per share, beating an estimate by Refinitiv by 42 cents per share. Revenue was $ 12.34 billion, beating the forecast of $ 11.01 billion. Digital sales have increased 41% since last year and 147% compared to two years ago. FedEx lost 4% even though it was outperforming in gains and profits. FedEx also gave a strong outlook for the year.
The major U.S. bank’s stocks rose after the Federal Reserve announced that banks could easily weather a severe recession. The Fed announced when it released the results of its annual stress test that the 23 institutions in the 2021 test had remained “well above the minimum capital requirement” during a hypothetical economic downturn. Bank of America and Wells Fargo were up 1.8% and 2.7%, respectively.
Investors will be on the lookout for a key inflation indicator on Friday morning when the Department of Commerce releases its core consumer spending index. Economists polled by Dow Jones expect prices to have risen 3.4% in May compared to the previous year. Economists also estimate that prices rose 0.6% from April to May.
The index tracks price movements across a wide range of goods and services. It is also generally viewed as a broader measure of inflation as it captures changes in consumer behavior and has a broader scope than the Department of Labor’s consumer price index.
On Thursday, the Dow Jones Industrial Average rose 322 points and the S&P 500 hit a new record of 4,266.49 after up 0.6%.
The tech-heavy Nasdaq Composite rose to a new record of 14,369.71 points as investors continued to invest in growth stocks. Cathie Wood’s flagship fund, ARK Innovation, gained 1.5% to perform well for the year.
President Joe Biden announced Thursday that the White House had signed an infrastructure deal with a non-partisan group of senators. Legislators have worked for weeks to put together a roughly $ 1 trillion package that could get through Congress with the support of both parties. Among other things, the framework provides for new expenditures of 579 billion US dollars for transport such as roads, bridges and rail, the infrastructure for electric vehicles and electric mass transit.
After last week’s Federal Reserve-induced sell-off, stocks are heading towards Friday with the probability of ending the week higher. The Dow is up 2.7% this week and the S&P 500 is up 2.4% since Monday. The Nasdaq is up 2.4% this week.
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