alexa certify

US Stocks Mixed on Growing Virus Cases 

U.S. futures are set to open mixed on Friday’s stock trading. This is amid some caution, as the country battles increasing numbers of Covid-19 cases, hampering efforts to reopen the economy. Bank stocks will be under pressure after the U.S. central bank imposed new restrictions on the sector.

Updates show S&P 500 Futures traded 8 points, or 0.3%, higher. Nasdaq Futures were up 30 points, or 0.3% and the Dow Futures contract dropped 19 points, or 0.1%. 

US stocks on Wall Street closed higher on Thursday, with the Dow Jones Industrial Average up 1.2%. The S&P 500 index rose 1.1% and the Nasdaq Composite index gained 1.1%. 

The S&P 500 and DJIA are on course to record their second losing week in three. However, the Nasdaq should post its fifth positive week in six weeks.

At least 20 million people in the United States may already have been infected with Covid-19. This was according to the latest estimate by the Centers for Disease Control. It’s around 10 times higher than the reported figure.

This came as the states of Texas and Florida halted their reopening. At this time, infections and hospitalizations surged. The U.S. registered a new daily record of over 37,000 new virus cases on Thursday.

US Stocks and the Fed

Banks will be in focus on Friday after the Federal Reserve said that it would impose a cap on dividend payments. It also said it would halt share repurchases for the next three months. 

It has imposed limits after the central bank’s latest stress tests on the sector showed significant capital losses for lenders. That’s when tested against the economic impact of Covid-19. It also required all banks to resubmit their capital plans later in their year.

Nike reported its first quarterly loss in the stock market in two years, after hours on Thursday. There was a sales decline of 38% year-over-year. 

Digital sales increased by 75%, representing about 30% of total revenue. The shopping public was channeled by lockdowns to Nike’s website for sneakers and workout gear. 

Economic data will center around U.S. personal income and spending on Friday. Personal income in May will likely have declined by 6% compared with a jump of 10% for April. 

Spending figures may show a 9% increase compared with a 14% retraction in April. This was when some U.S. states began to reopen. 

Oil prices rose, helped by signs of fuel demand recovering globally on Friday. Traders tend to overlook the increase in coronavirus infections in many U.S. states. They also overlook the recent build in inventories which suggest a revival in U.S. crude production.

Crude futures traded 0.8% higher at $39.03 a barrel while Brent contract rose 1.2% to $41.53.

Elsewhere, gold futures were up by 0.2% to $1,773.50/oz. Finally, EUR/USD traded at 1.1229, up 0.1%.

Comments Rating 0 (0 reviews)

Get the latest economy news, trading news, and Forex news on Finance Brokerage. Check out our comprehensive trading education and list of best Forex brokers list here. Subscribe now and receive FREE updates on the market today!

Leave a Reply


Subscribe to Our Newsletters

Have the best of Finance Brokerage News delivered directly to your mailbox. Subscribe now to receive the latest market news.