Stocks look set for a higher open as the market maintains its momentum following Thursday’s gains.
Futures on the Dow Jones Industrial Average were up 138 points, or 0.4%, while those on the S&P 500 and the Nasdaq Composite each gained 0.2%.
On Thursday, stocks rose to new highs after news broke that the White House and a group of bipartisan lawmakers had agreed to a $1 trillion infrastructure deal. That spending, if it happens. could serve as a modest boost to economic growth and would create a new revenue stream for construction and manufacturing companies.
Value stocks were outperforming growth companies on Friday morning, as they did on Thursday. The Dow is full of value stocks, whereas the Nasdaq has more technology and other growth shares. Value-oriented companies see a larger increase to earnings when economic demand strengthens.
“U.S. equity futures are modestly higher thanks to lingering infrastructure optimism and follow through momentum after yesterday’s record closing highs,” wrote Tom Essaye, founder of Sevens Report Research.
Elsewhere, economic data missed expectations. The Core Personal Consumption Expenditure Index rose 0.5% month over month in May, while economists had expected an increase of 0.6%. Consumer spending was flat relative to April, falling short of the expected 0.4% rise.
Among individual stocks, Nike (NKE) gained 13% after reporting a profit of 93 cents a share, beating forecasts for 51 cents a share. Sales were $12.3 billion, above expectations for $11 billion.
FedEx (FDX) stock fell 4% after reporting a profit of $5.01 a share, missing forecasts for $5.02 a share. Sales were $22.6 billion, above expectations for $21.5 billion.
United Rentals (URI) stock gained 1% after getting upgraded to Buy from Neutral at UBS.
Netflix (NFLX) stock gained 1.6%. Credit Suisse boosted the stock to Outperform from Neutral.
BlackBerry (BB) stock fell 1.3% after Canaccord Genuity changed its call to Sell from Hold .
Write to Jacob Sonenshine at jacob.sonenshine@barrons.com
June 25, 2021 at 08:18PM
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Stocks Moving Premarket: FedEx, Nike, BlackBerry - Barron's
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