Wall St set for subdued open as trade-fueled rally pauses

S&P 500 posts 5th week of gains as Wall Street hits records

S&P 500 posts 5th week of gains as Wall Street hits records

USA stock index futures pointed to a little changed open on Friday following a record-setting session for the major stock indexes.

The S&P 500 and Dow Jones indexes closed at record highs on Thursday after China said both countries would roll back existing tariffs in phases, but a Reuters report on fierce opposition to the agreement at the White House weighed on sentiment.

Walt Disney Co gained 5.8% in premarket trading as its popular theme parks and a remake of "The Lion King" lifted earnings, and the company also spent less than it had projected on its online streaming service, Disney+. On the same day that China said Beijing and Washington have agreed to mutually lift some tariffs as part of a "phase-one" deal, Peter Navarro, a senior US trade adviser, said there was no formal agreement in place and the final decision would lie with Mr. Trump.

"Investors somewhere knew that there was an existing issue regarding the rollback of these tariffs and with record highs being set, a little consolidation is to be expected", said Michael Geraghty, capital market strategist at Cornerstone Capital Group in NY.

The Cboe volatility index .VIX posted its lowest closing level since July 24.

The technology sector provided the biggest boost to the S&P 500, riding on an 8.3% jump in Qualcomm Inc. shares after the chipmaker forecast current-quarter profit above analysts' estimates. The S&P 500 and NASDAQ Composite are both up 0.6% for the week through Thursday's close.

BYD, Toyota to Set-up Research Venture to Develop EV
The softening sales follow Beijing's decision to cut the subsidies that created the electric-vehicle industry in the first place. In 2008, BYD became the first company in the world to sell and mass produce plug-in hybrid electrified vehicles (PHEVs).

Still, the S&P 500 was on track for its fifth straight week of gains, while the Nasdaq was eyeing its sixth consecutive weekly rise, partly propelled by a rosy third-quarter earnings season. The Dow was up 1.2% for the week.

Increasing optimism on the trade front and mostly better-than-expected earnings have driven the recent record run in stocks. Of the 446 S&P 500 companies that have reported results so far, roughly three-quarters have beaten profit estimates, according to IBES data from Refinitiv.

Technology shares also supported the market, including Microsoft, which rose 1.2%. Gap slumped about 6% after the apparel maker pared its profit targets for the year and said Chief Executive Art Peck would step down immediately. The Nasdaq Composite finished up 0.5% to 8,475.

Declining issues outnumbered advancers for a 1.14-to-1 ratio on the NYSE and for a 1.01-to-1 ratio on the Nasdaq.

This story has not been edited by Firstpost staff and is generated by auto-feed.

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