Nasdaq, Dow, S&P futures rise as market looks to break weekly losing streak

view original post

JaysonPhotography/iStock via Getty Images

Stocks index futures point to gains at the open Friday, looking to close out the shortened week with three up days out of four.

Nasdaq 100 futures (COMP.IND) +1.3%, S&P futures (SPX) +0.9% and Dow futures (INDU) +0.7% are higher.

The S&P is up more than 3% for the week after three-straight down weeks that put it back into bear market territory. It is right at resistance of 3,800. The Nasdaq will see resistance at 11,280 and the Dow at 30,720.

Markets are in “‘bad news is good’” mode, as growth risks cool inflation outlook, bond yields, commodities,” eToro strategist Ben Laidler said.

A recession is “likely be shallow, given the low macro imbalances,” but while the stock market has discounted a lot, it is still vulnerable to earnings, he added.

Rates are seeing a small rebound after the week’s selloff ahead of some important economic data. The 10-year Treasury yield is up 4 basis points to 3.11%. The 2-year is up 3 basis points to 3.04%.

Shortly after the start of trading, May new home sales numbers will arrive, with economists looking for a drop to an annual rate of 588K.

There has been an “astonishing collapse in mortgage applications since the turn of the year, and even a big upward revision to April sales would not change the big picture,” Pantheon Macro’s Ian Shepherdson wrote. “The housing market is rolling over, rapidly, and sales have further to fall.”

“We see little chance of a clear bottom in sales until late summer or early fall, by which time sales will have fallen substantially further.”

The final measure of June Michigan consumer sentiment also arrives, expected to stay steady from the preliminary measure at 50.2. But the Fed will be looking at inflation expectations as Chairman Jay Powell noted the earlier 5.9% figure in his post-FOMC press conference.

And it may be one of the busiest trading days of the year due to Russell rebalancing, with products tied to $12T in funds.