By Carla Mozee, MarketWatch
Nike shares surge premarket; session marks end of month, quarter
and first half
U.S. stock futures stepped higher Friday, indicating a comeback
for the major indexes from a technology sector-led selloff, as
investors get set to wrap up trading for the month, quarter and
first half.
Updates on consumer spending and incomes due later will give
investors a steer on the health of the economy.
Dow Jones Industrial Average futures rose 52 points, or 0.2%, to
21,307.00, and S&P 500 futures tacked on 6 points, or 0.3%, at
2,426.00. Nasdaq-100 futures were up 18 points, or 0.3%, at
5,671.
The indicated gains would come after the S&P 500 and Dow
industrials on Thursday suffered
(http://www.marketwatch.com/story/sp-500-poised-to-ride-higher-on-financial-wave-but-nasdaq-signals-a-turn-lower-2017-06-29)
their worst one-day declines since May, hurt by another selloff in
technology stocks that outweighed gains for financial shares (XLF)
.
The S&P 500 stumbled lower by 20.99 points, or 0.9%, to
finish at 2,419.70, while the Dow Jones Industrial Average fell
167.58 points, or 0.8%, to close at 21,287.03. The tech-heavy
Nasdaq Composite Index sank 90 points, or 1.4%, to end at
6,144.35.
"It has been a tough week for the FANG (Facebook, Apple, Netflix
and Google) stocks with their prices falling between 3% and 6%
since Monday," said William O'Loughlin, an investment analyst at
Rivkin Securities, in Friday note.
Stocks this week were buffeted by central banks, as bond yields
rose and the dollar fell on comments from central bankers signaling
a coming end to easy monetary policy. Investors repriced
expectations for the European Central Bank and the Bank of England
to begin embarking on withdrawing monetary stimulus.
Read:Central banks set up investors for a long, hard road back
to 'normal'
(http://www.marketwatch.com/story/investors-face-a-long-hard-road-back-to-normal-2017-06-29)
And see:Here's why the stock market is spooked by central
bankers
(http://www.marketwatch.com/story/heres-why-the-stock-market-is-spooked-by-central-bankers-trump-agenda-delays-2017-06-29)
But Wall Street's main benchmarks were still on track to post
gains for the second quarter, which ends Friday. The session will
also mark the close of trading for the week, the month of June and
the first half of the year.
"We are cautiously optimistic on the outlook for U.S. equities,
but S&P 500 earnings growth expectations already look high and
are unlikely to be revised higher, unless there is progress with
fiscal stimulus domestically (e.g., tax reform) or global growth
continues to surprise on the upside," wrote Joyce Chang, global
head of research at J.P. Morgan, in a mid-year outlook.
Next week, equity trading will be shortened by the Independence
Day holiday on Tuesday.
Crunching numbers: Through Thursday, the Nasdaq was on course
for a weekly loss of 1.9% and a monthly decline of 0.9%. But it was
in line for a second-quarter rise of 3.9%, which would be a fourth
straight quarter of gains. For the first half, the index is on
track for a 14% gain.
The S&P 500 was looking at a weekly decline of 0.8%, but a
June increase of 0.3%. It was on course for 2.4% gain for the
second quarter and an advance of 8.1% for the first half.
The Dow industrials were on track for a weekly fall of 0.5%. But
the index could log a June advance of 1.3% and a second quarter
rise of 3%. For the first six months of 2017, it is looking at a
move of 7.7% higher.
Both the S&P 500 and the Dow industrials are poised for a
seventh consecutive quarterly rise.
Check out:It's been an ugly first half for commodities in 2017
(http://www.marketwatch.com/story/its-been-an-ugly-first-half-for-commodities-in-2017-2017-06-29)
And read:Dollar bulls have a lot to worry about in second half
of 2017
(http://www.marketwatch.com/story/dollar-bulls-have-a-lot-to-worry-about-in-second-half-of-2017-2017-06-29)
Economic docket: At 8:30 a.m. Eastern Time, Commerce Department
data may confirm expectations that Americans pared their spending
in May. Economists polled by MarketWatch expect consumer spending
growth to slow to 0.1% from 0.4% in April. The update on personal
income is forecast at a 0.3% rise, down from 0.4%.
At the same time, inflationary pressures have remained subdued
in May, with the personal consumption expenditure price index
expected to rise to 0.1% compared with April's increase of 0.2%.
The PCE price index is the preferred measure of inflation for many
Fed officials.
The Chicago business barometer, or Chicago PMI, for June is due
at 9:45 a.m. Eastern. That'll be followed at 10 a.m. Eastern by the
University of Michigan's final June update on consumer sentiment
for the month.
See: MarketWatch's economic calendar
(http://www.marketwatch.com/economy-politics/calendars/economic).
Stocks in focus:Nike Inc. (NKE) shares sprang up 7% premarket
after the sportswear giant late Thursday posted
better-than-expected quarterly profit and sales
(http://www.marketwatch.com/story/nike-jumps-7-premarket-after-earnings-beat-amazon-deal-2017-06-30).
Nike also confirmed a deal to sell shoes through Amazon.com
(http://www.marketwatch.com/story/nike-confirms-deal-to-sell-shoes-through-amazon-2017-06-29)
Inc. (AMZN).
Other markets: The ICE Dollar Index , which measures the buck
against a basket of six currencies, inched up 0.1%, while gold
slipped.
Asian stocks dropped sharply
(http://www.marketwatch.com/story/nikkei-dives-under-20000-as-asian-markets-sharply-pull-back-2017-06-29)
as the central bank-spurred bond selloff spread to the region
(http://www.marketwatch.com/story/bond-selloff-spreads-to-asia-with-japanese-yields-at-multimonth-high-2017-06-30).
European stocks latched onto modest gains
(http://www.marketwatch.com/story/european-stocks-inch-higher-after-sharpest-selloff-in-9-months-2017-06-30)
after their worst selloff in nine months on Thursday.
U.S. oil futures were up 0.7%, above $45 a barrel.
(END) Dow Jones Newswires
June 30, 2017 06:39 ET (10:39 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.