Friday October 12th

12-10-2018

Dow futures point to more than 300-point jump, regaining some of this week's steep losses

U.S. stock-index futures rose sharply ahead of Friday's open as worries over rising rates subsided and tech shares rebounded from steep losses earlier this week. A slew of better-than-expected bank earnings also helped boost the market. At around 7 a.m. ET, Dow Jones Industrial Average futures popped 226 points, indicating a gain of 353.17 points. S&P 500 and Nasdaq 100 futures also pointed to strong gains at the open. Futures climbed as tech shares rose sharply in the premarket. Amazon and Apple both rose more than 2 percent, while Netflix surged more than 3.5 percent. Facebook, meanwhile, gained 1.5 percent and Twitter jumped 2.6 percent. The move higher on U.S. stock futures follows an uptick in global equities. In Europe, the German Dax gained half a percent while France's CAC 40 climbed 0.7 percent. Asian equities also rose, with the Shanghai Composite surging 0.9 percent and Japan's Nikkei 225 gaining 0.5 percent. In the Greater China region, Hong Kong's Hang Seng indexadvanced by 2.07 percent in afternoon trade. Over in South Korea, the Kospi saw gains of 1.54 percent at 2,162.37. On Thursday, Wall Street closed sharply down, with the Dow falling over 540 points, bringing its two-day losses to more than 1,300 points. Sentiment was rocked around the globe in recent sessions, as investors grew nervous over the rise in interest rates and high valuations in tech shares. President Donald Trump has recently criticized the U.S. Federal Reserve for the decline in stock markets, saying Wednesday that he wasn't happy with how the central bank continued to raise interest rates. "The problem I have is with the Fed. The Fed is going wild. I mean, I don't know what their problem is that they are raising interest rates and it's ridiculous," Trump said during a telephone interview on Wednesday with Fox News. Trump went onto blame the Fed for the stock market decline on Thursday, but added that while he was disappointed, he wouldn't remove Jay Powell as Fed chair. Stocks have also fallen this week as tech — the biggest S&P 500 sector by market cap weight — has lost nearly 6.8 percent through Thursday's close. These losses have sent the major indexes down more than 5 percent, on pace for their biggest weekly declines since March. Sentiment was also lifted by stronger-than-expected third-quarter results from J.P. Morgan Chase, which sent the company's stock up by more than 1 percent. Oil prices rose on Friday slightly reversing two days of declines in the previous sessions driven by sharp falls in equity markets and indications that supply concerns have been overblown, but were still on track for a weekly fall. Brent crude futures rose 33 cents, or 0.4 percent, to $80.59 a barrel by 0256 GMT. The contract fell 3.4 percent on Thursday, dropping to as low as $79.80, its weakest since Sept. 24. It is heading for a 4.2 percent decline this week, the first weekly drop in five. U.S. West Texas Intermediate (WTI) crude futures were up 26 cents, or 0.4 percent, at $71.23 a barrel, after falling 3 percent in the previous session to the lowest since Sept. 21. WTI is on track for a 4.2 percent decline this week, also the first weekly drop in five. Gold prices fell on Friday as Asian shares firmed, but the metal held near a more than 10-week high hit in the previous session when it breached a key resistance level, stoking optimism about a potential uptick in prices. Asian stocks staged a rebound on Friday to set course for their first gains in two weeks, soothing investor sentiment, which was hit after a major volatility index, seen as Wall Street's fear gauge, rose to an eight-month high. Spot gold was down 0.4 percent at $1,218.86 an ounce, as of 0738 GMT after jumping about 2.5 percent on Thursday, its sharpest gain since June 2016, as a rout in equities sent investors rushing to safe-havens. U.S. gold futures were down 0.4 percent at $1,222.30 an ounce.