Dow Futures Gains 0.2% Upside, Bank Earnings Remain In Focus
During Friday's session, the US stock futures such as the Dow Futures remained unchanged but ended the week on a positive note. Experts associate this market behavior with 'calm before the storm' as the 2nd quarter earning reports of several US banks are due in the next few days.
Dow Futures contract gained 70 points on Friday, which is equivalent to a 0.2% upside. Similarly, the S&P 500 Futures lost 1 point while the Nasdaq 100 Futures lost 0.1% (8 points).
On Thursday, most of the US benchmark indices were higher after the release of the PPI report. The data showed a slowdown in inflation which means rate cuts which ultimately will help the stock market.
Although this month's rate hike is a done deal, the PPI data will pave the way for rate cuts later down the road. In theory, that's the main reason behind the optimism in the equity markets.
Stock Indices Remain Mostly Positive
The positive sentiment has helped the US stock indices to turn positive. For starters, the DJIA is up by 1.9% for the day while the S&P 500 has gained 2.5%.
At the same time, the NASDAQ Composite gained 3.5% upside which has made it on the path to close one of its best weeks since the start of March.
Looking ahead, all eyes are now on the quarterly earnings season starting with JPMorgan, Citigroup, Wells Fargo, & so on. For the most part, the results of these firms may so not be so good considering the deal-making market is going through a dry patch these days.
But despite all the negatives, the results of the big banks will likely remain positive but the pace of growth may stall a little.
If the results turn out to be in accordance with expectations, the US stock indices and the future indices will turn positive and may gain further ground.