Nasdaq, S&P 500, Dow Jones futures rally, led by Amazon surge

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The stock market looks set to add to its gains for the week Friday on the back of some megacap earnings strength.

Nasdaq 100 futures (NDX:IND) +1.3% are doing the best, with S&P futures (SPX) +0.8% and Dow futures (INDU) +0.4% also higher.

Amazon is leading the way, up 12% premarket on AWS growth. Apple is also higher post-earnings, while Exxon and Chevron are gaining following their results this morning.

So far this week, the Nasdaq (COMP.IND) and S&P (SP500) are up a little less than 3%, while the Dow (DJI) is up 2%.

“The S&P 500 can continue its summer rally toward the declining 100-day moving average near 4124 and big chart resistance in the mid 4100s if tactical support in the low 3900s continues to hold,” Stephen Suttmeier, technical strategist at BofA, said.

The 10-year Treasury yield (US10Y) is up 2 basis points to 2.70% and the 2-year yield (US2Y) is flat at 2.88%.

The recent moves down in rates “is a market believing the Fed will be forced into a pivot, and that slowing activity figures will soon translate into lower inflation,” Deutsche Bank’s Jim Reid said. But he is “skeptical things will work out as the market is increasingly pricing in.”

Before the bell, July personal income and spending numbers arrive. Economists expect a 0.9% rise in spending and 0.5% in income. The core PCE price index, an inflation gauge closely watched by the Fed, is seen rising 0.5%, staying at an annual rate of 4.7%.

Overnight, Elon Musk tweeted that he sees inflation trending down, while Bill Ackman took aim at Jay Powell’s assessment of rates at neutral.

“Real policy rates remain deeply in negative territory despite the Fed believing they are at neutral,” Reid said. “Furthermore, policy works on long and variable lags, not only is 5 months (the amount of time until the market is pricing cuts) a very short amount of time for today’s tightening to bring inflation back from 9%, but the very reaction we’re witnessing in markets means financial conditions have actually eased since the June FOMC meeting.”

After the bell, the July Chicago PMI arrives. The forecast is for a dip to 55. And the final July Michigan sentiment gauge is also on tap, with expectations for it to stay at the preliminary measure of 51.1.

Among other active issues, Roku is plunging after it withdrew guidance.