Stock futures recovered from European and Chinese markets Friday to end trading positively for both June and the second quarter.
Nike (NKE) was a major market influence as a turnaround in its North American sales skyrocketed the Dow Jones component. Wells Fargo (WFC) rallied bank shares after the Federal Reserve published its second round of stress tests and a series of financials raised dividends and repurchased shares. Vertex Pharmaceuticals (VRTX) seemed to have a gap open as one competitor reported mixed clinical trial results.
Dow futures were 0.5% above fair value, just past their early highs, with Nike and JPMorgan at the top of the list. Nasdaq 1
Nike and Vertex outperformed the rise of 0 , 5% on the S & P 500 futures. The banks led by Wells Fargo and Huntington Banchsares (HBA) also made an early profit.
In the economic news, personal income growth accelerated, while consumption growth slowed in May, the Ministry of Commerce reported. Income increased by 0.4%, from the previous month of 0.3% and in line with estimates. Expenditure fell sharply to 0.2%, compared with an increase of 0.6% in April and half of the 0.5% increase expected from consensus forecasts.
The core price index excluding energy and food remained flat at 0.2%
The June Purchasing Managers Index for Chicago, the University of Michigan Consumer Sentiment, and the weekly Oil Census are also being released during the meeting.
A Strong Quarter for Tech (Minus Chips) and Smallcaps
Friday The final session in a difficult June and a volatile quarter as investors struggled to navigate the changing trade policies and evolving Fed strategy.
For June, the Dow lost 0.8% until Thursday. If it does not make up for that loss in Friday's session, the index will be three months higher, three since the beginning of the year. The S & P 500 has soared by 0.4% and sees its third monthly advance. The Nasdaq has a gain of 0.8% and is also working on its third high month.
The outlook for the quarter shows tech and small caps running the show, even though chips were taken out of the way. The Nasdaq has recorded an increase of 6.2% since the beginning of the quarter. The Smallcap Russell 2000 has a profit of 7.9%. Meanwhile, the Philadelphia Semiconductor Index has fallen 1.3%.
The S & P 500 rose 2.9% from quarter to quarter. The Dow struggled to stay positive with a gain of 0.5% for the quarter.
Among the industries, jewelry, office supplies, automobiles and international oil companies posted high double-digit growth in the second quarter. Mortgage services, foreign banks and solar energy groups posted the largest losses.
Nike Leads Dow; Veeva Receives Price Target Hike
Nike shot up 10% after reporting that sales in North America had turned after a three-quarter shift. Sales and earnings growth surpassed analysts' consensus targets, and the company announced a $ 15 billion share buyback.
Nike shares closed on Thursday in a test of the 10-week average and create a buying margin at this level. The new purchase zone coincides with a purchase number of 70.35 with the purchase area.
Also on the income side, KB Home (KBH) rose 6.8%, Constellation Brands (STZ) dropped 3.8% after the quarterly results.
Veeva Systems (VEEV) rose more than 7% after Morgan Stanley confirmed its overweight position and raised its price target to 85%. The IBD 50 share undercut a 78.39 buy point by 6% this week, while also breaking support on its 10-week line in heavy trading.
Vertex surge on trial results, Wells Fargo receives stress reduction
Vertex rose 10% before opening. Biotech Galapagos (GLPG) reported on its treatment with cystic fibrosis GLPG2737 showed mixed results in a Phase 2 study. The current treatment of the left vertex with the dominant position in space. Vertex shares have been consolidating since March.
Wells Fargo reached 3.9%, rising following the release of the Fed's stress test report on Thursday. The San Francisco-based bank, which had been under pressure for years during the financial crisis, received approval from the Fed for its balance sheet and investment plans. The company raised the quarterly dividend from 39 cents to 43 cents on Thursday and announced plans to invest another $ 15 billion in its share repurchase program.
Other banks reduced their early gains: Citigroup (C) rose 1.9%, JP Morgan 1.7% and BB & T 2%.
Netflix (NFLX) grew by more than 1%, putting it at the forefront of FANG technology leaders. The IBD 50 and Leaderboard Stock is being extended after breaking out of a shallow base in May.
China, Europe rally: consumer export data due
Hong Kong and Shanghai markets rebounded on Friday Hong Kong Hang Seng was 1.6% and the Shanghai Composite 2.2%. The Hang Seng nevertheless lost 5% in June, the fourth decline of the year. The Shanghai Composite lost 8% in June, losing 13.9% since the beginning of the year.
The Nikkei 225 in Tokyo saw its share price rise 0.2% on Friday and European markets picked up on China's rally. By noon, the Frankfurt DAX and the CAC-40 had each risen by more than 1% in Paris. London's FTSE 100 gained 0.7%
The Big Picture: Nasdaq recovers from key support
Premarket: Futures go up as banks gather on stress test; Nike Spikes
Beer giant near A Buy with merit due; Fed's Favorite Inflation Ad Under Control: Action Plan
Amazon PillPack Deal Rolls Out These Health Stocks