By Victor Reklaitis, MarketWatch
Google, GE, Honeywell jump premarket after earnings
Shares of Google Inc. were surging on the heels of blockbuster
results, overshadowing otherwise muted U.S. stock-market action in
premarket trade Friday.
S&P 500 futures were roughly flat at 2,117.50, while those
for the Dow Jones Industrial Average dipped by 11 points, or less
than 0.1%, to 18,009.
Nasdaq-100 futures showed the most spark, rising 17.50 points,
or 0.4%, to 4,615.25.
For the week, the S&P 500 is on track for a 2.3% gain as of
Thursday's close, meaning the benchmark would snap a three-week
losing streak. The Dow is eyeing a 2% advance and second straight
up week, while the tech-heavy Nasdaq is up 3.3%.
The market has rallied over the week as fears about Greece's
debt crisis have receded, and as Federal Reserve Chairwoman Janet
Yellen and other central bankers have worked to reassure
investors.
On Thursday, U.S. stocks climbed
(http://www.marketwatch.com/story/wall-street-set-for-higher-open-after-greek-vote-2015-07-16)
as the Nasdaq closed at a record and Netflix Inc.(NFLX) shares
soared 18%.
What strategists are saying: As second-quarter earnings continue
to come out, traders should be "riding the trend here as the bulls
will continue to pay up for these earnings," said Chris Weston,
chief market strategist at IG, in a note on Friday.
Weston added: "It seems only a matter of time before the S&P
500 joins the NASDAQ in making a new all-time high in my
opinion."
Other strategists are sounding worried, especially by the
aggressive buying of tech stocks. "The trading action in the US
Equity market in the past 24 hours is the type that prompts
flashbacks to the equity bubble blow off in early 2000," said Mike
O'Rourke, JonesTrading's chief market strategist, in a note.
Read:Nasdaq surge is triggering tech-bubble flashbacks
(http://www.marketwatch.com/story/nasdaq-surge-is-triggering-2000-bubble-flashbacks-for-strategists-2015-07-17)
Friday's economic news: Investors on Friday will take in a fresh
reading for a consumer price index at 8:30 a.m. Eastern, with
economists polled by MarketWatch predicting a 0.3% rise for June. A
report on June housing starts is expected at that same time, and
forecasts are for 1.11 million starts and 1.18 million permits.
Check out:
At 10 a.m. Eastern, a consumer sentiment figure is forecast to
come in at 95.0. Also at that time, Fed Vice Chairman Stanley
Fischer is slated to speak at the U.S. Chamber of Commerce.
Individual movers & shakers: Gains in Google Inc.(GOOGL)
(GOOGL) were in the double digits in premarket action after the
tech giant's adjusted quarterly profit beat Wall Street's forecasts
late Thursday.
General Electric Co.(GE) rose premarket after its quarterly
profit and revenue topped expectations
(http://www.marketwatch.com/story/general-electric-profit-revenue-top-estimates-2015-07-17-64855429),
and Honeywell International Inc.(HON) gained as its results
exceeded estimates
(http://www.marketwatch.com/story/honeywell-shares-up-45-after-company-beats-profit-sales-estimates-2015-07-17).
Read more in Friday's Movers & Shakers column
(http://www.marketwatch.com/story/general-electric-honeywell-google-in-spotlight-2015-07-16)
Other markets:Chinese shares
(http://www.marketwatch.com/story/china-shares-edge-higher-2015-07-17)
capped the week with a two-day rally, as the scramble by officials
in that country to support stocks seems to have taken hold.
European stocks showed little change
(http://www.marketwatch.com/story/europe-stocks-take-a-breather-after-greece-drives-strong-week-2015-07-17)
but were still headed for their best weekly finish since January
and the announcement of the European Central Bank's quantitative
easing program.
The U.S. oil benchmark dipped toward another three-month low
(http://www.marketwatch.com/story/oil-dips-to-another-3-month-low-nears-50-mark-2015-07-17),
though Brent crude gained.
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