U.S. stock futures relentlessly pushed ahead as they were uniformly higher early Friday, after the broader market scaled a fresh peak in the previous session.
Federal Reserve Governor Christopher Waller called for a 25-basis-point rate cut at the July rate-setting meeting, in a prepared speech delivered after the market closed.
Fund manager Louis Navellier expects the Federal Open Market Committee (FOMC) statement, released at the end of a two-day meeting later this month, to signal a cut in September. He noted that the consensus is for a pause at the July meeting.
Some profit taking cannot be ruled out, given the record run, especially as traders look ahead to a spate of tech earnings next week.
As of 1:29 a.m. Friday, the Dow futures climbed 0.23%, the S&P 500 futures added 0.21%, and the Nasdaq 100 futures rose 0.17%, while the Russell 2000 futures increased by a steeper 0.33%.
Positive economic data, including a strong rebound in June retail sales, a fall in weekly jobless claims, a resurgence in growth in the regional manufacturing index, and encouraging earnings reports, boosted the market on Thursday.
The S&P 500 Index hit new intraday (6,304.69) and closing highs (6,297.36), while the Nasdaq Composite ended at a fresh peak for a fourth straight session.
The Invesco QQQ Trust (QQQ), an exchange-traded fund (ETF) that tracks the Nasdaq 100 Index, rose 0.81%, and the SPDR S&P 500 ETF (SPY) added 0.61%.
The SPDR Dow Jones Industrial Average ETF Trust ( DIA (BME:DIDA)) and the iShares Russell 2000 ETF (IWM) moved up 0.65% and 1.31%, respectively.
On Friday, the spotlight is on the preliminary University of Michigan’s consumer sentiment index for July, with economists, on average, modeling a reading of 61.8, up from 60.7 in June. The report is due at 10 a.m. ET.
The Commerce Department is scheduled to release the housing starts and building permits data at 8:30 a.m. ET.
Earnings from American Express (NYSE:AXP), Charles Schwab (NYSE:SCHW), Regions Financial (RF) and SLB (SLB) are also on investors’ radar.
Speaking about the market rally on CNBC, Interactive Brokers’ founder and Chairman Thomas Peterffy said, “ I basically do not see any dark clouds on the horizon. As a matter of fact, I can’t think of anything that will stop this rally.”
Peterffy expects the rally to continue for the next two to three years, as he views President Donald Trump’s policies as “very favorable” for equities, particularly the easing of barriers and regulations for businesses.
Crude oil extended its gain early Friday, while gold futures traded modestly lower at little over $3,340 an ounce.
The 10-year U.S. Treasury note edged down after rising on Thursday on the back of the positive economic data. The dollar also gave back some ground.
Most major Asian stocks rallied, tracking the gains on Wall Street overnight, although the Japanese, South Korean and New Zealand markets saw some weakness.
