Traders work the floor during morning trading at the New York Stock exchange (NYSE) ahead of the US Federal Reserve’s decision on lending rates, in New York on January 31, 2024.
Angela Weiss | Afp | Getty Images
Stock futures rose on Friday as the government said December’s inflation reading was even lower than first reported, and the S&P 500 headed for a decisive break of the 5,000 level, after briefly trading above the historic milestone on Thursday.
Futures on the Dow Jones Industrial Average added 30 points, while S&P 500 futures rose 0.2%, and Nasdaq 100 futures nudged up 0.3%. For the week, the S&P is up 0.8%, while the blue-chip Dow and the Nasdaq Composite have gained 0.2% and 1.1%, respectively.
All the major averages headed for a fifth consecutive winning week.
The government revised lower its December consumer price index to just a 0.2% increase, down from a 0.3% increase first reported. Core inflation figures, excluding food and energy, were the same. Treasury yields traded lower following the release of the revised figures. January’s CPI figures are due next week.
Nvidia, Alphabet and Microsoft looked set to push the S&P 500 above 5,000 on Friday with all three higher in the premarket.
A solid earnings season, easing inflation data and a resilient economy have powered the market rally into 2024, with the S&P up nearly 5% year to date. It’s also contributed to what’s poised to be another week of gains for stocks.
Hopes that a strong economy can continuing support growth also propelled the benchmark index to a high of 5,000.40 during Thursday’s trading before closing less than 3 points below the key 5,000 threshold. The S&P 500 first crossed 4,000 in April 2021.
“On the surface, there is no difference between 5,000 and 4,999, but these big round numbers do hold psychological significance for investors,” said Ryan Detrick, chief market strategist at Carson Group. “As we’ve seen throughout history, those that are willing to hold during the rough times are usually rewarded in the end, this time was no different.”
S&P 500
A total of 319 companies in the S&P 500 have reported quarterly earnings so far, and 80.6% of them reported above analyst expectations, according to LSEG. That compares to a 67% beat rate in a typical quarter since 1994.
Pinterest shares dropped 9% before the bell after the image-sharing company issued a weaker-than-expected forecast and missed revenue estimates, while PepsiCo fell 2% on mixed results. Take-Two Interactive slumped 8% on a disappointing outlook.