US pre-open: Stocks set for sixth day of gains as investors eye data slew
US futures pointed to a sixth day of gains on Wall Street on Friday as investors set aside their concerns about rising inflation and higher interest rates and looked ahead to a slew of economic data releases.
At 1225 GMT, Dow Jones Industrial Average and S&P 500 futures were up 0.2%, while Nasdaq futures were 0.3% firmer.
David Morrison, chief market analyst at GKFX, said: "US stock index futures are indicating another firmer open for Wall Street today. This follows on from yesterday’s sharp rally which took the US majors to a five-day winning streak. Today’s early move took the S&P 500 futures back above the 50-day moving average. This week the index has broken back above both the 100-day moving average and significant resistance around 2,700 even as the yield on the US 10-year Treasury note remains within striking distance of the key 3.0% level. Meanwhile the US dollar is a touch firmer after hitting a fresh three-year low against the euro overnight.
"All this suggests that investors have shrugged off the stock market correction from earlier in the month. However, it’s worth noting that the futures indices have all pulled back from their best levels this morning and also that this week’s bounce-back looks a bit overdone. So today’s session takes on particular significance, especially ahead of the weekend. Another strong close will have many traders looking for US stock indices to retest January’s record highs. However, if we get a pull-back which takes the S&P 500 back below 2,700 then get set for another bumpy week."
In corporate news, Campbell Soup looked set for an up day following the release of its second-quarter results, in which it reported adjusted earnings per share of $1.00 versus estimates of 82 cents.
Coca-Cola was also set to fizz higher at the open after its fourth-quarter numbers beat analysts' forecasts on both the top and bottom line.
On the data front, housing starts and building permits are at 1330 GMT, along with the import and export price indexes, while the Michigan consumer sentiment index is at 1500 GMT.
Economists expect the building permits reading to fall from 1.30 million to 1.29 million month-on-month in January, while consumer sentiment is forecast to slip from 95.7 to 95.4 this month.