12:20 pm: Travel stocks propel markets higher
The Dow was up 260 points, 0.9%, to 29,340.7, the Nasdaq Composite was up 64 points, 0.6%, to 11,774.4, and the S&P 500 gained 30 points, 0.8%, to 3,566.9.
Travel stocks continued to ascend on vaccine optimism. United Airlines Holdings Inc (NASDAQ:UAL) gained 5.5% to $38.87, Delta Air Lines Inc (NYSE:DAL) picked up 5.6% to $36.30 and Southwest was up 3.8% to $43.52.
“Dealers are relatively optimistic in the US…” CMC Markets UK analyst David Madden wrote Friday. “Some normality has returned to stocks now that the dust has settled with respect to the possible coronavirus drug story. New York and Chicago looks as if they are in for tougher restrictions, and that could spread to other cities in the near term, and the bullishness from the vaccine story might fade.”
10:30 am: Proactive North America headlines:
Empower Clinic’s Inc (CSE:CBDT) (OTCQB:EPWCF) (FRA:8EC) Kai Medical Laboratory achieves record coronavirus test processing in October
VolitionRx Limited (NYSEAMERICAN:VNRX) ends 3Q with $21M in cash as it prepares to launch Nu.Q Vet Cancer Screening Test
Willow Biosciences Inc (TSE:WLLW) (OTCQX:CANSF) (FRA:3D7) ends 3Q with C$9.1M in cash after successful pilot production of CBG
9.40am: Wall Street starts ahead
As expected, the main Wall Street indices began Friday’s session on the front foot as market sentiment continued to be positive despite rising coronavirus infections across the world.
Shortly after the opening bell, the Dow Jones Industrial Average was up 0.66% at 29,272, while the S&P 500 rose 0.69% to 3,561 and the Nasdaq climbed 0.63% to 11,783.
Meanwhile, the latest data from the US producer price index (PPI) showed a 0.5% increase year-on-year, higher than the 0.4% increase that had been expected.
Analysts at Pantheon Macroeconomics said that while overall core PPI was low at 1.1%, it will “likely increase further, given that the three-month annualized rate is 3.8%”.
“But the likelihood of a further Covid hit to spending, especially in the services sector, over the next couple months, means that any upward pressure will be modest”, Pantheon added.
7.55am: Wall Street expected to start higher
Markets in New York are expected to start in the green on Friday, as worries over rising coronavirus cases in the US and Europe failed to dampen enthusiasm on Wall Street.
Spread-betters are predicting the Dow Jones Industrial Average will open up around 200 points, while the S&P 500 is expected to climb 24 points and the Nasdaq to rise 72 points.
Traders seem keen to end the week on a positive note, with global markets having swung wildly after Monday’s vaccine news from Pfizer sent markets soaring amid hopes the pandemic could be entering its end stages.
However, David Madden at CMC Markets said the rebound in sentiment “seems a bit strange” amid rising cases of the virus across multiple countries including the UK, Germany and Italy.
He added: “The health crisis is becoming more of a serious issue in the US too as cities like New York and Chicago could be in for stricter restrictions.”
Though he said the pandemic might not have the same negative impact on equities that it used to, seeing as there has been great progress made with potential vaccines.
Four things to watch for on Friday:
- Share price reaction from Walt Disney Co (NYSE:DIS) after the entertainment giant suffered a loss for its fourth quarter that was less bad than feared alongside stronger than expected growth in its Disney+ streaming service
- Shares in Cisco Systems Inc (NASDAQ:CSCO) will also be in focus after the video conferencing firm beat estimates for its first quarter
- The US PPI for October may attract some attention in the macro calendar for some clarity on the US economy. The figure is set to show a 0.2% increase in producer prices for the month, slowing from a 0.4% increase in September
- Michigan inflation expectations and consumer sentiment may also draw the eye of those monitoring macro data, although few fireworks are expected
Story by ProactiveInvestors
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