Friday October 19th

19-10-2018

Stocks set to rise at the open, rebounding from a 300-point loss on Thursday

U.S. stock-index futures pointed to a higher open on Friday as Wall Street tried to rebound from steep losses in the previous session. At 8:49 a.m. ET, Dow Jones Industrial Average futures rose 74points, indicating a gain of 90.55 points, as shares of Procter & Gamble surged in the premarket. S&P 500 and Nasdaq 100 futures also pointed to a higher open. This follows a sell-off on Wall Street in the previous trading session, adding to already steep losses for the month of October. On Thursday, the Dow dropped more than 300 points, following a plunge in Chinese equities. The Dow and S&P 500 have fallen more than 4 percent each in October, while the Nasdaq is down nearly 7 percent. Equities sold off on Thursday amid worries about rising interest rates and fears of a slowing global economy. Overnight, China said its economy grew by 6.5 percent in the third quarter, missing expectations. Chinese equities surged, however, as officials took steps to support the market, and that was helping sentiment in the U.S. History shows that, when stocks plunge in China, the U.S. market is rarely immune as large exporters suffer. The recent moves come as investors pore through a slew of corporate earnings reports. On Friday, Dow-member Procter & Gamble posted better-than-expected earnings, sending the stock up 5 percent. Honeywell and Schlumberger also reported better-than-forecast profits. American Express, PayPal and Sketchers all posted Thursday after the close earnings that topped analyst expectations. The corporate earnings season is off to a strong start. With more than 15 percent of S&P 500 companies having reported, 83 percent have topped analyst expectations, according to FactSet. In economic data, existing home sales figures are scheduled for release at 10 a.m. ET. Stocks in Asia were mixed on Friday after China’s GDP growth for the third quarter of 2018 came in below expectations. After a turbulent morning, Greater China markets rebounded strongly, following a series of measures by China’s securities regulator to support the struggling stock market. The Shanghai composite surged 2.58 percent to close at around 2,550.47, and the Shenzhen composite bounced 2.582 percent to end the trading day at about 1,263.81. Meanwhile, Hong Kong’s Hang Seng index rose 0.56 percent in afternoon trade. In South Korea, the Kospi also saw a recovery from earlier losses, rising by 0.37 percent to close at 2,156.26. Over in Japan, however, the Nikkei 225 slipped 0.56 percent to close at 22,532.08, while the Topix index declined by 0.69 percent to end the trading week at 1,692.85. Oil prices rose on Friday on signs of surging demand in China, the world’s second-biggest oil consumer, although the market was heading for a second week of losses on rising U.S. inventories and concern that trade wars were curbing economic activity. Benchmark Brent crude oil was up 81 cents a barrel at $80.10 per barrel. U.S. light crude was 52 cents higher at $69.17. Gold prices nudged higher on Friday as Asian shares fell on renewed political and economic concerns including China’s weak growth, with the metal on track for a third straight weekly gain. Spot gold was up 0.2 percent at $1,227.41 per ounce as of 0441 GMT, and about 0.8 percent higher for the week. U.S. gold futures were up 0.1 percent at $1,230.9 an ounce.