By Ryan Vlastelica
Dow, S&P 500 coming off records that was blue-chip index's
first since January
U.S. stock-index futures pointed to a slightly higher open on
Friday, indicating that Wall Street would extend its recent uptrend
and push further into all-time highs.
Where are the major benchmarks trading?
Futures for the Dow Jones Industrial Average advanced 44 points,
or 0.2%, to 26,771. S&P 500 futures gained 4 points, or 0.1%,
to 2,943.50. Nasdaq-100 futures rose 15 points, or 0.2%, to
7,623.75.
Both the Dow and the S&P 500 ended at records on Thursday
(http://www.marketwatch.com/story/stock-futures-slightly-higher-sp-500-near-record-2018-09-20),
the culmination of a lengthy stretch of steady moves higher. The
S&P 500 has risen in eight of the past nine sessions, as of
Thursday's close, while the Dow has risen in seven of the past
eight.
The Dow's record was notable as it was the first for the
blue-chip average since January. Both the S&P and the Nasdaq
have hit multiple records over the past few months, thanks in large
part to the outperformance of technology and internet stocks. While
Apple fueled the Dow's advance
(http://www.marketwatch.com/story/dows-first-record-since-january-powered-by-surge-in-apples-stock-2018-09-20)
to all-time highs on Thursday, this is a sector the average has
less exposure to, a factor that has limited its gains until
recently, when industrial stocks have started to lead the
market.
Read: Not just tech: The stock-market rally is broader than it's
given credit for
(http://www.marketwatch.com/story/not-just-tech-the-stock-market-rally-is-broader-than-its-given-credit-for-2018-09-19)
For the week, the Dow is up 1.9% and on track for its biggest
weekly percentage gain since July. The S&P is up 0.9%. Both the
Dow and the S&P are on track for their second straight weekly
gain, as well as their 10th positive week of the past 12. The
Nasdaq is looking at a weekly gain of 0.2%.
What's driving the market?
Markets have been grinding higher in a low-volatility market for
several weeks. The gains have largely been supported by improving
economic data, which have pointed to strong economic fundamentals,
particularly in contrast to other regions, where stocks have been
struggling.
On Thursday, gains came as jobless claims dropped to their
lowest since November 1969, a sign of an extremely strong labor
market. Separately, the Philadelphia Fed manufacturing index jumped
more than expected in September, while an index of leading economic
indicators suggested the U.S. economy could look forward to 3%
economic growth
(http://www.marketwatch.com/story/us-economy-poised-for-strong-second-half-of-2018-leading-indicators-show-2018-09-20)
in the second half of 2018.
On Friday, Markit will release reports on how both the
manufacturing and the services sectors fared in September. The data
will be released at 9:45 a.m. ET.
These signs of economic strength have been enough for investors
to ignore repeated signs of escalating tensions between the U.S.
and China -- among other regions -- on trade policy. President
Donald Trump has announced nearly $500 billion in tariffs on
Chinese goods this week; China retaliated with measures of its own
and said it would introduce more if the U.S. tariffs take
effect.
Don't miss:Dow, S&P 500 records belie festering fear that
China and the U.S. 'are on a collision course'
(http://www.marketwatch.com/story/dow-sp-500-records-belie-festering-fear-that-china-and-the-us-are-on-a-collision-course-2018-09-20)
While many investors are concerned that the trade issue could
escalate into a full-blown trade war, they have so far been
heartened by the fact that the issue hasn't shown much impact in
economic data or corporate results. Furthermore, some market
watchers have said that recent developments haven't been as severe
as expected, leaving room for optimism.
South Korean Finance Minister Kim Dong-yeon expressed optimism
about signing a revised U.S. free-trade pact into law
(http://www.marketwatch.com/story/south-koreas-finance-minister-has-high-hopes-for-new-trade-deal-with-us-2018-09-20),
though lawmakers in Seoul have threatened to block the deal if
Washington imposes new tariffs on Korean autos and auto parts.
What are market analysts saying?
"We don't have a full-out trade war, and at this point, most
people understand the impact of what's happened so far won't be too
big on margins. And since earnings and revenue growth are as high
as they've ever been, it's perfectly fair for stocks to be at
records," said Peter Lazaroff, co-chief investment officer at
Plancorp, which has $3.9 billion in assets.
"However, given that valuations are pretty high, the prospect of
our getting a pullback should be at the forefront of investors's
minds. That would just be part of a healthy, functioning market,
however. Overall markets aren't euphoric or complacent about the
risks out there."
What stocks are in focus?
Micron Technology Inc.(MU) late Thursday reported strong
quarterly results, though it gave an outlook that was below
expectations
(http://www.marketwatch.com/story/micron-stock-gains-as-earnings-deflect-doubts-about-memory-market-2018-09-20).
The results could spark broader weakness in the chip space if it
leads to concerns that the sector's sky-high growth could be coming
to an end
(http://www.marketwatch.com/story/micron-forecast-creates-jitters-that-big-memory-chip-party-is-ending-2018-09-20).
Adobe Systems Inc. (ADBE) agreed to buy software maker Marketo
(http://www.marketwatch.com/story/adobe-plans-to-acquire-marketo-for-475-billion-2018-09-20)
from a private-equity firm for $4.75 billion.
AT&T Inc. (T) rose 1.4% in premarket trading after UBS
upgraded the stock to buy
(http://www.marketwatch.com/story/att-stock-gains-after-ubs-upgrades-to-buy-2018-09-21).
GTx Inc.(GTXI) plummeted more than 90% in premarket trading
after the company said its therapy intended for post-menopausal
women with stress urinary incontinence did not meet the primary
endpoint in a phase 2 clinical trial
(http://www.marketwatch.com/story/gtx-inc-stock-drops-94-premarket-after-phase-2-trial-failure-2018-09-21-8913959).
Medtronic PLC (MDT) said it would buy Mazor Robotics Ltd.
(MZOR.TV) for $1.64 billion
(http://www.marketwatch.com/story/medtronic-to-buy-mazor-robotics-for-164-billion-2018-09-20).
Wells Fargo & Co.(WFC) late Thursday said it would reduce
jobs as part of its "ongoing transformation"
(http://www.marketwatch.com/story/wells-fargo-announces-plan-to-cut-tens-of-thousands-of-jobs-2018-09-20)
to address industry trends and changes in customer behavior.
The Wall Street Journal reported that days after the Trump
administration instituted a controversial travel ban in January
2017, Google employees discussed ways
(http://www.marketwatch.com/story/google-workers-mulled-manipulating-search-engine-results-in-wake-of-trumps-travel-ban-2018-09-20)
they might be able to tweak the company's search-related functions
to show users how to contribute to pro-immigration organizations
and contact lawmakers and government agencies. Google is a unit of
Alphabet Inc. (GOOGL) (GOOGL)
Where are other markets trading?
Asian stocks rose
(http://www.marketwatch.com/story/nikkei-again-leads-widespread-asian-market-gains-2018-09-20),
with shares in Shenzhen on track for their best week since July and
Japan's Nikkei at its highest level since January.
Crude-oil prices rose 0.6% while gold was down 0.1%. The U.S.
dollar index inched up by 0.1%.
(END) Dow Jones Newswires
September 21, 2018 09:24 ET (13:24 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.