U.S. stock futures were higher Friday morning following a choppy trading session as traders considered Federal Reserve Chair Jerome Powell’s latest comments on inflation.
Dow Jones Industrial Average futures rose by 138 points, or 0.43%. S&P 500 and Nasdaq 100 futures climbed 0.52 and 0.79%, respectively.
Shares of DocuSign surged more than 17% in extended trading after the electronic agreements company reported an earnings beat. The company also issued a third-quarter revenue forecast that was above expectations.
The Dow Jones Industrial Average jumped 193 points, or 0.61%, during the regular session on Thursday — closing higher after alternating between gains and losses throughout the day. The S&P 500 rose 0.66%, and the Nasdaq Composite advanced 0.60%.
Those gains put all three major averages on pace to snap a 3-week losing streak. Through Thursday, the Dow is up 1.45%. Meanwhile, the S&P 500 is up 2.09%, and the Nasdaq Composite is 1.99% higher.
Still, stocks remain under pressure as expectations of a 0.75 percentage point rate hike this month grew on Wall Street, after the Fed chair said again that he is “strongly committed” to bringing down inflation.
“I think that people are grossly underestimating what the Fed is going to have to do to fight inflation,” Richard Bernstein Advisors CEO Richard Bernstein said Thursday on CNBC’s “Closing Bell: Overtime.”
“It’s incredibly ironic that investors are even considering a Fed pivot when the real fed funds rate remains about as most negative as it has historically been. So the Fed isn’t even really heartily fighting inflation yet. We don’t have a positive real fed funds rate. It’s hard to argue that we should turn wildly bullish anytime soon,” he added.
Oil prices regain after slip from demand concerns
Oil prices rose on Friday as traders weighed Russia’s threat to halt energy exports, and central banks’ aggressive rate hikes.
Prices are also supported as the Biden administration is not considering new releases of reserves from the U.S. Strategic Petroleum Reserve (SPR).
— Lee Ying Shan
Japanese yen strengthens after comments from officials
The Japanese yen strengthened as much as 1% following commentary from officials, including Bank of Japan Governor Haruhiko Kuroda who called the currency’s rapid moves “undesirable.”
Kuroda’s comments come after his meeting with Prime Minister Fumio Kishida where the two discussed recent currency moves, Reuters reported.
Earlier, Finance Minister Shunichi Suzuki also said the government would not rule out any options on foreign exchange moves, which the minister has repeatedly described as “rapid and one-sided.”
CNBC Pro: Uranium is ‘on a tear’ right now. Here are two ETFs to play it
One niche area of the commodity market — uranium — has been a bright spot over the past month, with its performance outpacing even that of the broader energy sector.
Two ETFs have surged in recent weeks, as the West scrambles to reduce its reliance on Russian energy.
— Weizhen Tan
Major averages on pace to snap 3-week losing streak
After notching their second straight positive session on Thursday, all three major averages are on track to snap a 3-week losing streak.
Here are where markets stand week to date:
- The Dow Jones Industrial Average is up 1.45%
- The S&P 500 is up 2.09%
- The Nasdaq Composite is up 1.99%
— Sarah Min
Shares of DocuSign soared more than 18% after the electronic agreements company surpassed earnings expectations, and issued a better-than-expected third-quarter revenue forecast.
DocuSign reported earnings of 44 cents per share on revenue of $622 million. Analysts surveyed by Refinitiv forecasted earnings of 42 cents per share on revenue of $602 million.
— Sarah Min
The latest weekly reading from the Investors Intelligence survey of newsletter editors showed the number of bulls sliding to 29.7% from 38.4% last week and a recent 2022 high of 45.1%.
The percentage of bearish newsletters also stood at 29.7% in the latest survey vs 30.1% the week before and a mid-June high of 44.1%.
The number in the correction camp jumped to 40.6% from 31.5% last week and just 25.3% the prior week.
As a result, the “bull-bear spread” narrowed to 0, snapping a 6-week run when bulls outnumbered bears. A lower number means risk is falling and a rising number means risk is increasing, according to contrarians who keep close tabs on the II numbers in order to gauge investor sentiment.
— Scott Schnipper
U.S. stock futures open little changed
U.S. stock futures opened little changed following a choppy session in the major averages as Wall Street considered the pace of future interest rate hikes.
Dow Jones Industrial Average futures rose by 23 points, or 0.07%. S&P 500 and Nasdaq 100 futures climbed 0.08% and 0.13%, respectively.
— Sarah Min