Friday July 17th

17-07-2020

Dow futures rise more than 100 points as Wall Street tries to recover from Thursday’s drop

U.S. stock index futures climbed higher early Friday morning following a volatile session that snapped a four-day winning streak for one of the major averages. Dow Jones Industrial Average futures rose 115 points, indicating a 50-point gain at the open. The S&P 500 futures gained 0.5%, while the Nasdaq-100 futures traded 0.9% higher. During regular trading, the Dow slid 135 points, or 0.5%, to post is first daily decline in five days. The S&P 500 and Nasdaq Composite dipped 0.3% and 0.7%, respectively. Those losses came amid a mixed batch of U.S. economic data. Initial weekly jobless claims rose by 1.3 million in the week ending July 11. Economists polled by Dow Jones expected a gain of 1.25 million. Meanwhile, retail sales jumped 7.5% last month, topping a Dow Jones forecast of a 5.2% gain. June’s sharp gains come after sales surged by a record 17.7% in May. Gregory Faranello, head of U.S. rates trading at AmeriVet Securities, said the market took the better-than-forecast retail sales data with “a grain of salt.” “We’re rolling into this period of coronavirus cases increasing and we’ve had some shutdowns,” Faranello said. “So, there’s definitely a sense of nervousness in the market.” More than 3.5 million coronavirus cases have been confirmed in the U.S., according to Johns Hopkins University. Some states, including California, Florida and Texas, have had to roll back reopening measures to curb a recent spike in cases. Netflix reported second-quarter earnings that missed analyst expectations, pushing the stock down more than 8% in premarket trading. The company’s guidance for third-quarter subscriber growth — a key metric for the streaming giant — also contributed to the steep sell-off in the stock. Netflix expects to add 2.5 million subscribers in the third quarter. That’s well below a FactSet estimate of 5.27 million. “This is a terrible number,” Tim Seymour, founder of Seymour Asset Management, told CNBC’s “Fast Money,” referring to Netflix’s subscription growth guidance. “There is a very competitive environment. When I look at Disney+ and how quickly they’ve built those subs over 50 million and you look at saturation in the United States, Netflix has to be an international story … International is not going to be growing as fast as possible.” Those results come as Netflix, along with other major tech stocks, have struggled this week. Facebook, Amazon, Alphabet and Microsoft are all down week to date. Stocks in Asia Pacific mostly edged higher on Friday following Thursday’s drop that saw shares in China plunging more than 4%. Mainland Chinese stocks recovered from an earlier decline to close higher on Friday. The Shanghai composite added 0.13% to about 3,214.13 while the Shenzhen component advanced 0.913% to around 13,114.94. Hong Kong’s Hang Seng index rose 0.69%, as of its final hour of trading. South Korea’s Kospi advanced 0.8% to close at 2,201.19. Japan stocks bucked the overall trend among the region’s major markets. The Nikkei 225 dipped 0.32% to close at 22,696.42 while the Topix index shed 0.33% on the day to 1,573.85. Oil prices slipped on Friday amid growing uncertainty about the global recovery in fuel demand as coronavirus cases surged in several countries, while major producers were set to ease output curbs. Brent crude futures fell 25 cents to $43.12 a barrel. West Texas Intermediate crude dropped 22 cents to $40.53. Gold rose on Friday and was headed for its sixth consecutive weekly gain as surging coronavirus cases fuelled demand for safe havens. Spot gold had climbed 0.5% to $1,805.43 per ounce. U.S. gold futures were up 0.4% at $1,806.80.