By Sara Sjolin, MarketWatch
Empire state index, industrial production due premarket
U.S. stock futures pointed to another day of gains for Wall
Street on Friday, with the S&P poised to march further into
record territory, as investors wait for fresh manufacturing
data.
Futures for the Dow Jones Industrial Average (YMM5) added 21
points, or 0.1%, to 18,222, indicating the blue-chip benchmark
could inch further toward an all-time closing high. On Thursday, it
ended just 0.2% shy of its record close of 18,288.63, hit March
2.
The S&P 500 index (SPX) managed to ring up a new closing
high on Thursday, and Friday looked set to be an upbeat trading
day, too. Futures for the index (ESM5) traded 2.15 points higher,
or 0.1%, at 2,119.75.
Futures for the Nasdaq 100 index (NQM5) climbed 11.75 points, or
0.3%, to 4,502.25, after closing 1.4% higher on Thursday.
Craig Erlam, senior market analyst at OANDA, said the moves on
Friday reflected "calmness that has returned to the bond markets"
after a volatile week in fixed-income trading.
"Bond markets now appear to have stabilized, and if anything,
they're paring some of the losses, which is helping overall
sentiment," he said. "The perception that the Fed will be forced to
hold off on its first rate hike a little longer following those
weak retail-sales figures on Wednesday is also supporting equity
markets."
U.S. stocks have been weaving in and out of losses this week, as
investors digested the battered bond markets and a string of mixed
data that raised questions about the strength of the U.S. economy.
This has spurred speculation the Federal Reserve will wait to raise
interest rates until later this year, rather than in June, which
some market participants had been forecasting.
Former Fed Vice Chairman Donald Kohn said the debate over
rate-hike timing is focused on a move between September and
December
(http://www.marketwatch.com/story/feds-rate-hike-choice-is-september-or-december-kohn-says-2015-05-14).
Data: Economic data out on Friday will be closely watched with
its implications for the Fed in view. At 8:30 a.m. Eastern Time,
the Empire State manufacturing index is due, forecast to improve to
5.5 in May from negative 1.2 in April
(http://www.marketwatch.com/story/empire-state-index-drops-to-negative-12-in-april-lowest-since-december-2015-04-15).
At 9:15 a.m. Eastern, industrial production and capacity
utilization -- both for April -- are scheduled for release. The
University of Michigan reading on consumer sentiment comes out at
10 a.m. Eastern, and is predicted to show a pullback in May from
95.9 in April
(http://www.marketwatch.com/story/as-consumer-sentiment-perks-up-the-question-of-spending-looms-2015-05-01).
"Gasoline prices have risen in recent weeks, while equity-market
volatility has picked up as stock prices have declined. Both
factors suggest that sentiment may slip in May from the strong
April reading," analysts at Barclays said in a note.
There were no Federal Reserve speakers on the calendar
Friday.
Movers and shakers: Shares of Netflix Inc. (NFLX) rose 1% in
premarket trade after reports the entertainment-streaming service
is in talks with a Chinese media company to enter China's
online-video market
(http://www.bloomberg.com/news/articles/2015-05-15/netflix-said-in-talks-to-enter-china-with-jack-ma-backed-wasu).
Avon Products Inc.(AVP) gave up 1% ahead of the bell after what
appeared to be a bogus takeover offer on Thursday
(http://www.marketwatch.com/story/sec-looking-into-dubious-bid-for-avon-2015-05-15).
Shares of Nordstrom Inc.(JWN) climbed 1.4%, shaking off
weaker-than-expected earnings from late Thursday.
Symantec Corp.(SYMC) shares may also move after the
security-software company's earnings, released Thursday, missed
forecasts
(http://www.marketwatch.com/story/symantec-shares-slip-after-earnings-miss-weak-outlook-2015-05-14).
Other markets: European stock markets rose almost across the
board (http://www.marketwatch.com/storyno-meta-for-guid), building
on gains from Thursday when the European Central Bank's president,
Mario Draghi, underlined the bank's commitment to stimulus
efforts.
In Asia, Hong Kong's Hang Seng Index closed 2% higher
(http://www.marketwatch.com/storyno-meta-for-guid), boosted by talk
that a stock-connect program between Hong Kong and Shenzhen will be
announced as soon as this weekend.
Oil (http://www.marketwatch.com/storyno-meta-for-guid)(CLM5) and
most metals declined, while the ICE dollar index (DXY) moved a leg
higher to trim its weekly loss to 1.1%.
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