US stocks could extend yesterday’s rebound into early trading
(RTTNews) – Following the substantial rebound seen in the previous session, stocks are expected to rise further on Friday in early trading. Major index futures are currently pointing to a higher open for markets, with the Dow Jones futures contract up 193 points.
Traders may continue to look for stocks at relatively reduced levels after the heavy selling seen in recent sessions.
Major averages showed a notable rebound from multi-month intraday lows during Thursday’s session, but remain well below their recent highs.
Concerns over a possible Russian invasion of Ukraine weighed on markets late last week and early this week, although some traders may view the selloff as overdone.
While the United States and its allies have imposed harsh sanctions on Russia in response to the attack, the measures are not seen as as crippling as some feared.
The West’s apparent reluctance to target Russia’s energy sector has helped ease concerns about a spike in oil and gas prices fueling further inflation.
Positive sentiment could also be generated in response to a report from the Commerce Department showing that new orders for US-made durable goods rose much more than expected in January.
The report said durable goods orders jumped 1.6% in January after a significantly revised 1.2% jump in December.
Economists had expected durable goods orders to rise 0.8% from the 0.7% decline reported the previous month.
Excluding a substantial increase in orders for transportation equipment, durable goods orders rose 0.7% in January after rising 0.9% in December.
Economists had expected non-transportation orders to rise 0.4%, matching the increase initially reported for the previous month.
A separate report from the Commerce Department showed that US personal income was virtually unchanged in January, with an increase in compensation more than offset by a decrease in government benefits.
The Commerce Department said personal income rose less than a tenth of a percent in January after rising an upwardly revised 0.4 percent in December.
Economists expected personal income to fall 0.3% from the 0.3% increase originally reported for the previous month.
Meanwhile, the report showed personal spending rose 2.1% in January after falling a downward-revised 0.8% in December.
Personal spending is expected to jump 1.5% from the 0.6% drop originally reported for the previous month.
Shortly after trading begins, the University of Michigan is expected to release its revised reading on consumer sentiment in February.
The Consumer Sentiment Index is not expected to be revised from the preliminary reading of 61.7, down from 67.2 in January.
The National Association of Realtors is also due to release its January pending home sales report. Pending home sales are expected to rise 1.0% in January after falling 3.8% in December.
A pending home sale is one in which a contract has been signed but not yet completed. Normally, it takes four to six weeks to close a contract sale.
After falling sharply in early trading, stocks staged a stunning turnaround during Thursday’s trading session. The tech-heavy Nasdaq showed a particularly strong rebound after hitting its lowest intraday low in nearly a year.
The Nasdaq climbed 436.10 points or 3.3% to 13,473.59 after falling 3.4% in early trading. The Dow Jones also rose 92.07 points or 0.3% to 33,223.83 after plunging nearly 860 points, while the S&P 500 jumped 63.20 points or 1.5% to 4,288 .70.
In overseas trading, stock markets in the Asia-Pacific region were mostly up in Friday’s trading. Japan’s Nikkei 225 index jumped 2%, while China’s Shanghai Composite Index climbed 0.6%.
Major European markets also showed substantial upward moves during the day. While the French CAC 40 index jumped 2.8%, the British FTSE 100 index and the German DAX index both climbed 3%.
In commodities trading, crude oil futures fell $0.64 to $92.17 a barrel after climbing $0.71 to $92.81 a barrel on Thursday. Meanwhile, after climbing $15.90 to $1,926.30 an ounce in the previous session, gold futures plunge $31.70 to $1,894.60 an ounce. .
On the currency front, the US dollar is trading at 115.56 yen from 115.53 yen at the close of trading in New York on Thursday. Against the Euro, the Dollar is valued at $1.1224 versus $1.1192 yesterday.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.