DOW JONES futures were up 0.08% to 32,835 points, while S&P 500 futures were up 0.14% to 4,165 points. The NASDAQ 100 futures rose 0.29% to 14,016 points.
Debt ceiling negotiations weighed on markets this week. The S&P 500 enters Friday’s session so far this week down around 1%, while the Dow is down nearly 2% over the period.. The Nasdaq is up 0.3%.
And that the S&P 500 and Nasdaq had a strong session yesterday Thursday, gaining 0.9% and 1.7%, respectively, after better-than-expected sales forecasts and stronger earnings. NVIDIA forecasts have fueled a rally in the semiconductor sector and artificial intelligence and other technology stocks. Nvidia shares rose 24.4% on the session to close at an all-time high.
“As the market cheers on NVIDIA’s earnings report and guidance, as well as a positive report from Main Street’s legendary Best Buy, headlines suggesting a debt ceiling resolution could finally help strengthen the broader fundamentals of the market said Quincy Krosby, Chief Strategist for Global LPL Finance.
And it so happens that the debt ceiling negotiations are set for another day. House Speaker Kevin McCarthy exited the Capitol Thursday night and said no deal had been reached. However, citing a US official, Reuters reported that The White House and McCarthy are close to an agreement that would raise the US debt ceiling for two years. According to the information, most expenses would be capped under the deal.
Treasury Secretary Janet Yellen has repeatedly warned that the US could default on June 1 unless the debt ceiling is raised.
On the macro front today, investors should pay attention to April personal income and spending data, variables that always accompany readings the personal consumption price index PCE, the price variable most commonly tracked by the Federal Reserve (Fed).. “Some better-than-expected readings from this index would reignite the debate over whether the US Federal Reserve has already completed rate hikes or whether it will continue the process, which is not being well received by bond markets, assets whose yields are not well received will be included.” If so, they will attract again,” warns Juan J. Fernández-Figares, of Link Management.
In the bond market, the yield on the US 10-year bond fell three points to 3.783%. For two-year paper, the yield falls two points to 4.491%.
On the corporate side, quarterly earnings season is pretty much over, but investors still have a handful of earnings reports to digest. Gap shares are up 15% after the retailer posted a significant margin improvement. Of course, revenue came in slightly below expectations at $3,280 million, while analysts had forecast $3,290 million.
Costco Whsl, also a retailer, was down slightly after revenue came in below expectations: $53.650 million in the fiscal third quarter, while analysts had forecast $54.570 million. Costco reported adjusted earnings per share of $3.43, ahead of analysts’ forecast of $3.29.
Ulta Beauty falls 8% ahead of the opening, despite the company confirming its full-year comparable sales and earnings guidance. Ulta has slightly raised its revenue guidance for the year. The company posted earnings of $6.88 per share on sales of $2.63 billion. Analysts had expected earnings of $6.87 per share on revenue of $2.62 billion.
Much better reception for Workday, which is up 7% in the stock market. Workday posted adjusted earnings per share of $1.31, compared to analyst estimates of $1.12. The company also narrowly beat revenue expectations, which came in at $1.68 billion versus a forecast of $1.67 billion. Workday also announced that Zane Rowe, who was CFO at VMware, will become CFO starting next month.
On the commodity markets, oil prices are rising after yesterday’s declines. US West Texas futures were up 0.93% to $72.33while benchmark Brent crude in Europe rose 0.88% to $76.59.
The euro appreciated 0.16% against the dollar to settle at $1.0745 for each common currency.