Wall Street rally poised to continue after record closes
Dow closes above 27K: Will investors jump back into the market?
Bullseye Brief author Adam Johnson and Circle Squared Alternative Investments CEO Jeff Sica react to the Dow closing above 27,000 for the first time.
A surge in trading on Wall Street is poised to continue on Friday after two of top equity benchmarks closed with record highs.
Continue Reading Below
The Dow Jones Industrial Average, which closed above 27,000 for the first time on Thursday, was trending towards an increase of 85 points at the open. The S&P 500, which also previously closed at record levels, was up slightly in futures trading, while the Nasdaq is expected to open up 24 points.
Investors continue to remain optimistic that the Federal Reserve will cut interest rates at the end of July after Chairman Jerome Powell signaled as much during two-days of hearings on Capitol Hill.
“The markets are responding to Powell actually confirming what the futures markets were already telling us,” said Randy Frederick, vice president of trading and derivatives at Charles Schwab & Co.
In economic news, the Labor Department said on Friday its producer price index for final demand edged up 0.1 percent last month after a similar gain in May. In the 12 months through June, the PPI rose 1.7 percent, the smallest gain since January 2017. Economists polled by Reuters had forecast the PPI unchanged in June and increasing 1.6 percent on a year-on-year basis.
Meanwhile, shares for top pharmacy benefit managers, like CVS Health and UnitedHealth Group Inc., are expected to continue to increase after the Trump administration abandoned an effort to eliminate the drug rebates that flow from drugmakers to the middlemen price negotiators.
|CVS||CVS HEALTH CORPORATION||57.97||+2.59||+4.68%|
|UNH||UNITEDHEALTH GROUP INCORPORATED||261.16||+13.68||+5.53%|
Second-quarter earnings seasons kicks off in earnest next week with top banks like JPMorgan Chase and Wells Fargo reporting results for the three months through June.
CLICK HERE TO GET THE FOX BUSINESS APP
On Thursday, Delta Air Lines reported better-than-expected profits fueled by higher sales of premium ticketing, the first airline to report earnings amid the grounding of the Boeing Max jet. The Atlanta-based carrier, however, does not have of the planes in its fleet.
Source: Read Full Article