Opening Comment — Friday, May 10, 2024
DJIA: 39,387.76, up 331.37
S&P 500: 5,214.08, up 26.41
NASDAQ: 16,346.26, up 43.50
Stocks higher ahead of May consumer sentiment
Stock futures are higher on Friday, ahead of the release of the preliminary University of Michigan Consumer Sentiment Index for May, while investors look forward to comments from various Federal Reserve (Fed) speakers scheduled for today. The Dow is increasing 0.2%, while the S&P 500 is rising 0.3%. The Nasdaq 100 is up 0.4% relative to fair value on the GLOBEX.
U.S. equities were higher on Thursday, as investors digested the latest jobless claims data, which came in higher than consensus estimates. The Dow was up 0.9%, while the tech-heavy Nasdaq Composite rose 0.3%. The S&P 500 increased 0.5% with 10 of 11 sectors finishing in positive territory. The Real Estate sector gained the most, rising 2.3%.
On the data front today, the preliminary reading of the University of Michigan Consumer Sentiment Index is expected to record 76.2 for May, down from the prior month’s reading of 77.2. Meanwhile, May’s preliminary readings for the University of Michigan’s one- and 5-10-year inflation expectations are forecasted at 3.2% and 3.0%, respectively, both unchanged from the prior month’s readings. The Monthly Budget Statement for April is forecasted to register a surplus of $250.0 billion versus the prior month’s surplus of $176.2 billion.
Across the pond, European stocks are higher in mid-day trading as the U.K.’s economy rebounded from recession in the first quarter of 2024, with the country’s Gross Domestic Product (GDP) surpassing expectations. Italy’s industrial production decreased in March, compared to an anticipated increase.
Overnight in Asia, stocks were higher with Japan’s current account surplus widening less than expectations in March.
In FOREX trading, the dollar is little changed ahead of key U.S. inflation data next week.
Over in the commodity pits, West Texas Intermediate (WTI) crude oil is 0.8% higher at $79.86/barrel, driven by ongoing optimism about China’s improving economy and the lack of progress in negotiations to resolve the conflict between Israel and Hamas.
In the metals complex, gold is 1.8% higher at $2383.40/ounce.