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Dow futures rise more than 100 points helped by Nike earnings, key inflation report ahead

Dow futures rise more than 100 points helped by Nike earnings, key inflation report ahead

25 Jun 2021

U.S. stock futures rose in overnight trading on Thursday after the S&P 500 closed at a record.

Dow futures rose 137 points. S&P 500 futures and Nasdaq 100 futures were both in mildly positive territory.

Nike‘s stock rose 14.1% in extended trading after the company reported earnings of 93 cents per share, outpacing a Refinitiv estimate by 42 cents per share. Revenue came in at $12.34 billion, topping a forecast of $11.01 billion. Digital sales were up 41% since last year and 147% from two years ago. FedEx dipped 4% despite beating on the top and bottom lines of its earnings. FedEx also gave a strong yearly outlook.

Shares of the major U.S. bank popped after the Federal Reserve announced the banks could easily withstand a severe recession. The Fed, in releasing the results of its annual stress test, said the 23 institutions in the 2021 exam remained “well above” minimum required capital levels during a hypothetical economic downturn. Bank of America and Wells Fargo rose 1.8% and 2.7%, respectively.

Investors will be watching for a key inflation indicator on Friday morning when the Commerce Department releases the core personal consumption expenditures index. Economists polled by Dow Jones are expecting prices rose 3.4% in May from a year earlier. Economists also estimate prices increased by 0.6% from April to May.

The index captures price movements across a variety of goods and services. It is also generally considered a wider-ranging measure for inflation as it captures changes in consumer behavior and has a broader scope than the Labor Department’s consumer price index. 

On Thursday, the Dow Jones Industrial Average jumped 322 points and the S&P 500 reached a new record of 4,266.49 after gaining 0.6%.

The technology-heavy Nasdaq Composite rose to a fresh record of 14,369.71 as investors continued to pour into growth stocks. Cathie Wood’s flagship fund, ARK Innovation, rose 1.5% and went positive for the year.

President Joe Biden announced Thursday that the White House struck an infrastructure deal with a bipartisan group of senators. The lawmakers have worked for weeks to craft a roughly $1 trillion package that could get through Congress with support from both parties. The framework will include $579 billion in new spending on transportation like roads, bridges and rail, electric vehicle infrastructure and electric transit, among other things.

Following last week’s Federal Reserve induced sell-off, stocks are heading into Friday with likelihood of ending the week higher. The Dow is up 2.7% this week and the S&P 500 has risen 2.4% since Monday. The Nasdaq is up 2.4% this week.

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