Stocks opened higher on Friday, a day after a jump in bond yields and a more hawkish tone from Federal Reserve Chair Jerome Powell helped to snap the longest winning streak for the S&P 500 and Nasdaq in two years.
The Dow Jones Industrial Average (^DJI) jumped by about 0.5% or more than 150 points, while the tech-heavy Nasdaq Composite (^IXIC) and benchmark S&P 500 (^GSPC) each gained about 0.3% and 0.4%, respectively.
Still in focus Friday was the message from Powell, who described the Fed’s policy as “restrictive” but emphasized rate hikes were still on the table as the outlook for inflation remains cloudy.
“If it becomes appropriate to tighten policy further, we will not hesitate to do so,” Powell said in a speech before the International Monetary Fund in Washington.
Other Fed officials have suggested this week that they believe the central bank needs to implement more tightening. On Friday, the Dallas Fed’s Lorie Logan, Atlanta’s Raphael Bostic, and San Francisco’s Mary Daly are all set to speak.
Meanwhile, bond yields ticked down after spiking Thursday afternoon. The benchmark 10-year yield (^TNX) moved down below 4.6%.
Wall Street on Friday will also get a fresh look at consumer sentiment with the release of the University of Michigan’s index.
In commodities, oil rose for the second straight session after plunging to a three-month low on concerns about global consumption. West Texas Intermediate crude futures (CL=F) moved up close to $77 a barrel, while Brent crude futures (BZ=F) traded above $80.
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ABitcoin steadies, Ethereum soars
Bitcoin (BTC-USD) prices steadied on Friday after surging close to $38,000 on Thursday amid optimism regulators will soon approve the first spot bitcoin ETF. As of mid-morning, prices were trading at just above $37,400 a coin. Yahoo Finance’s David Hollerith can catch you up to speed on the price action here.
Ethereum (ETH-USD), the second-largest cryptocurrency by market cap, jumped about 5% to trade near $2,100 on Friday after BlackRock filed for an Ethereum ETF with the Nasdaq on Thursday. Ether, which touched a six-month high earlier in the session, has rallied 75% since the start of the year.
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JConsumer inflation expectations hit highest level since 2011
The stagnation in headline inflation decreases appears to be weighing on the American consumer.
The latest reading on consumer sentiment from the University of Michigan released Friday showed expectations for long-run inflation ticked up to a level not seen since 2011. Consumers now see inflation at 3.2% over the next five years, a move up from the 3% last month.
The broad index of consumer sentiment showed a reading of 60.4, below economist expectations for a reading of 63.7. The print is lowest since May and marks the fourth-straight month of declines for the closely tracked index of consumer sentiment.
“While current and expected personal finances both improved modestly this month, the long-run economic outlook slid 12%, in part due to growing concerns about the negative effects of high interest rates,” Surveys of Consumers director Joanne Hsu said in the release. “Ongoing wars in Gaza and Ukraine weighed on many consumers as well.”
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Plug Power, The Trade Desk, Tesla: Stocks trending in morning trading
Here are some of the stocks leading Yahoo Finance’s trending tickers page in morning trading on Friday:
Plug Power (PLUG): Shares plummeted more than 30% after the company, which provides fuel cells for industrial EVs used by Amazon and Walmart, warned in an SEC filing there is “substantial doubt about the Company’s ability to continue as a going concern” given its cash position and expected capital spending. The filing comes after Plug reported weak third-quarter results amid “unprecedented hydrogen supply challenges” in North America.
The Trade Desk (TTD): Shares of the digital advertising company sank roughly 20% after the company’s fourth quarter revenue guidance came in lighter than expected as advertising headwinds persist across the industry. The company projected revenue for the current quarter of $580 million, compared to the $610 million analyst polled by Bloomberg had expected.
Tesla (TSLA): Tesla shares traded flat on Friday following support from Tesla bulls like Gary Black, managing partner of Future Fund, and Wedbush analyst Dan Ives after HSBC analyst Michael Tyndall initiated coverage of Tesla on Thursday with a Reduce rating and $146 price target, implying a 33% drop in the stock. Check out Yahoo Finance’s Pras Subramanian’s full coverage here.
Diageo (DEO): Shares of the alcohol company, which owns Johnnie Walker whisky, Captain Morgan rum, and Smirnoff vodka, among others, fell about 15% on Friday after warning sales will suffer in Latin America and the Caribbean due to “materially weaker performance” and “macroeconomic pressures.” The region accounts for about 11% of total sales. The company expects first-half operating profit growth to drop as a result.
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Stocks open higher
Stocks opened higher on Friday after snapping their longest winning streak in two years on Thursday. The Dow Jones Industrial Average (^DJI) led the early morning session, jumping by about 0.5% or more than 150 points. The tech-heavy Nasdaq Composite (^IXIC) and benchmark S&P 500 (^GSPC) each gained about 0.3% and 0.4%, respectively.
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MFutures higher ahead of week’s final trading day
US stock futures were higher ahead of Friday’s opening bell, with Dow futures leading the way, rising about 0.3%, with S&P 500 and Russell 2000 futures pointing to gains closer to 0.2% at the open. Nasdaq futures were up about 0.1%.
Stocks will look to rebound on Friday after snapping their longest winning streak in two years on Thursday, following a weak 30-year Treasury bond auction and comments from Fed Chair Jay Powell that left the door open to future rate hikes from the central bank.
Read the full article here