Written by Lisa Pauline Matakkal and Purvi Agarwal
(Reuters) – Wall Street futures edged higher on Friday, led by a rise in stocks linked to the Nasdaq 100, amid broad gains in technology stocks, while Netflix soared after strong quarterly results. did.
Netflix shares rose 6.5% in premarket trading after the streaming giant said it beat Wall Street’s subscriber growth expectations and expects continued growth through the end of the year.
Many of the so-called “Magnificent Seven” stocks that have driven much of Wall Street’s stock gains this year rose in pre-market trading, following data showing a surge in sales of new iPhones in China. rose 1.5%.
Semiconductor giant Nvidia rose 0.9%, extending gains from Thursday on strong earnings from contract chipmaker TSMC, which boosted semiconductor stocks.
But Tesla fell 0.5% after U.S. auto safety regulators said they had opened an investigation into Tesla’s self-driving software following reports of four crashes, including one fatality. did.
The Dow E-mini rose 37 points (0.09%), the S&P 500 E-mini rose 10 points (0.17%) and the Nasdaq 100 E-mini rose 76.5 points (0.38%).
Strong earnings from financial companies and generally positive economic data pushed the Dow and S&P 500 to record highs this week. On Thursday, the Dow Jones Industrial Average closed at an all-time high, and the S&P 500 index is nearing the psychologically important 6,000 point mark.
All three major indexes are on track to post their sixth consecutive week of gains, but the Russell 2000 is expected to outperform with a gain of about 2%. Futures linked to the small-cap index rose 0.4%.
At the same time, U.S. Treasury yields have edged higher, with the benchmark 10-year Treasury yield once again above 4.1%, which could put further pressure on stock prices.
The S&P 500 Index is trading at about 22 times its expected P/E ratio, and stock prices are rising as there are signs that investors are looking for cheaper market sectors, partly due to soaring valuations and high expectations for corporate performance. may be prone to decline.
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“While we expect stock market performance to further improve now that interest rates are being cut, large companies remain well-valued and less sensitive to interest rate changes, so quality remains high,” said Neuberger Berman. “We will continue to favor small and medium-sized enterprises with high performance.” portfolio managers said.
Procter & Gamble was little changed despite lower-than-expected first-quarter sales, while oil giant SLB rose 1% after beating quarterly profit expectations.
American Express rose 2.4% after its quarterly profit beat expectations.
September housing starts will be published in the statistics, and Fed officials Christopher Waller, Neel Kashkari and Rafael Bostic are scheduled to speak on the day.
Expectations that the U.S. Federal Reserve will cut interest rates by 25 basis points at its November meeting have held steady throughout the week, currently at 92.1%, according to CME’s FedWatch.
Meanwhile, the number of listings of Chinese companies in the United States soared after the country’s central bank launched a financing program aimed at stimulating the stock market. Alibaba rose 2.9%, Jingtocom rose 5.5% and PDD Holdings rose 4.7%.
CVS Health fell 11.3% after reports that it has named longtime executive David Joyner as its new top executive.
(Reporting by Lisa Matakkal and Purvi Agarwal in Bengaluru; Editing by Pooja Desai)
