|Day's Range||2,831.44 - 2,850.49|
|52 Week Range||2,417.35 - 2,872.87|
The Dow pops for its best day in 4 months
U.S. stock futures are making small moves early Friday, suggesting the equity market could take a breather after the Dow industrials jumped by 396 points on Thursday.
Stocks found support on Friday as concerns from earlier in the week over Turkey’s economy and the US-China trade war continued to subside. The Turkish lira was slightly weaker while the Australian dollar gained on comments from the country’s central bank governor and gold was poised for its worst week since mid-2017. The CSI 300 of stocks on mainland China fell 1.4 per cent overall.
The S&P 500 fell more than 10% within a few days, the usual definition of a correction, and global stocks plummeted. The answer is a reflection both of the relative strength of China and the U.S., and investors’ views of Chinese policy. The risk was that devaluation would spread falling prices from China’s businesses to the rest of the world, when the global economy was already perilously close to deflation.
U.S. futures contracts are drifting lower during the pre-market session early Friday. The selling pressure is being fueled by a drop in Nvidia stock. Shares of the company fell by 6 percent on Thursday after the company reported better-than-expected earnings and lower-than-expected revenue guidance.
Shares of companies selling everyday household goods such as laundry detergent, cereal and razors are climbing, suggesting that even as the S&P 500 inches toward new highs, investors are hedging their bets through what they see as a safe corner of the market. The S&P 500 consumer-staples sector has jumped 10% over the past three months, outpacing the S&P 500’s 4.3% gain over the same period. The sector’s rally has helped it chip away at its loss for the year, although it still trails the S&P 500’s 6.2% gain and remains the index’s second-worst-performing sector in 2018.
U.S. stocks soared Thursday, bringing the Dow Jones Industrial Average its biggest one-day gain in four months, as upbeat earnings reports and stabilizing commodities prices helped calm investors’ fears about the global economy. Stocks around the world had slumped just a day earlier as fears about an economic crisis in Turkey spread through a variety of markets, pulling everything from copper to oil prices lower. Much of the slide had been driven by concerns among investors that what had begun as a relatively limited pullback in emerging markets could trigger a more violent, durable reversal across risky assets around the world.
Asia markets were mostly higher in Friday afternoon trade. On Thursday, White House economic advisor Larry Kudlow confirmed that the U.S. would hold a fresh round of trade talks with China later in August. Chinese tech giant Tencent saw its stock rebounding in the morning as it recovered from the losses sustained earlier in the week.