U.S. stock futures rose slightly Friday, putting the Dow
industrials and S&P 500 on track for their second straight week
of gains.
S&P 500 futures added two points, or 0.1%, to 2117. E-mini
Dow futures rose 19 points, or 0.1%, to 18063, and e-mini
Nasdaq-100 futures gained eight points, or 0.2%, to 4539. Changes
in stock futures don't always accurately predict moves in the stock
market after the opening bell.
Stocks rose Thursday, with a surge in biotechnology shares
propelling the Nasdaq Composite Index to a record. The tech-heavy
index rose 1.3% to 5132.95, notching its fourth record of the year.
The Dow advanced 1% to 18115.84 and the S&P 500 added 1% to
2121.24.
The Federal Reserve this week continued to signal that it would
take a slow approach to raising rates. The Fed's message reassured
stock investors, who have enjoyed six years of a bull market in a
low-rate environment. For the week, the Dow is poised to rise 1.2%
and the S&P 500 is on track to add 1.3%. The Nasdaq Composite
has gained 1.6% in the same period, which would mark its first
weekly advance in a month.
"There's a better definition of expectations now around a more
moderate pace of Fed rate hikes," said Mike Ryan, chief investment
strategist for UBS Wealth Management Americas. The Fed could raise
rates and then pause in order to see how the economy reacts, he
said.
"That's going to be better for the real economy and better for
financial markets," he added.
Mr. Ryan said he prefers shares of smaller companies to their
larger peers. "They're better geared to growth prospects in the
U.S. and less vulnerable to volatility in the dollar," he said.
The Russell 2000, the benchmark for small-company shares, closed
at a record Thursday.
European stocks rose Friday, though concerns about Greece's debt
negotiations continued. Germany's DAX added 0.3% and France's CAC
40 jumped 0.9%.
In commodity markets, gold futures added 0.1% to $1202.90 an
ounce. Crude-oil futures lost 1.4% to $59.59 a barrel.
The yield on the 10-year Treasury fell to 2.312% from 2.352% on
Thursday. Yields fall as prices rise.
In corporate news, Hershey Co. said it would cut about 300 jobs
and lowered its sales-growth forecast again for the year. Shares
slipped 2.4% premarket.
Write to Saumya Vaishampayan at saumya.vaishampayan@wsj.com
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