Stock futures were higher Friday because the Dow Jones Industrial average was on pace to snap an eight-week losing streak.
Futures on the Dow Jones Industrial Average climbed 82 points, or 0.3%. S&P 500 futures gained 0.5% and Nasdaq 100 futures rose 0.9%.
A report showing inflation slowing a bit helped give futures a lift on Friday. The core personal consumption expenditures price index rose 4.9% in April, after 5.2% pace within the previous month. This particular report is watched closely by the Federal Reserve when setting policy.
Investors on Friday also continued to parse through retail earnings. Ulta Beauty shares were up about 8% within the premarket after the corporate reported better-than-expected quarterly results, while Gap sunk nearly 20% after slashing its profit guidance.
The moves got here as investors were assessing the sustainability of this week’s rally and if whether it is a relief bounce or the underside of this yr’s long sell-off is in.
The Dow, S&P 500 and Nasdaq Composite are on target to shut the week higher. The Dow is up 4.4% and on target to snap its longest losing streak since 1923. The S&P 500 is 4% higher and the Nasdaq tis up 3.4% on the week. Each are riding seven-week losing streaks. A piece of the week’s gains got here Thursday, when all three of the averages rallied as strong retail earnings lifted sentiment.
Still, the averages are well off their highs, with the Nasdaq Composite solidly in bear market territory and the S&P 500 having briefly dipped greater than 20% below its record last week.
The Nasdaq after Thursday’s close is down 27.6% from its record, while the S&P 500 and Dow are off by 15.8% and 11.7%, respectively.
“We expect there’s a very good likelihood for some more strength here. That is form of a classic bear market rally or bounce off the underside,” Troy Gayeski, chief market strategist for FS Investments, told CNBC’s “Closing Bell: Extra time” on Monday. “Inflation expectations have rolled over recently.”
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A slew of information is ready for release Friday, including personal income, consumer spending and core personal consumption expenditures.