U.S. stock-index futures ticked higher Friday as investors looked ahead to data on activity in the manufacturing and services sectors a day after equities stumbled following reports President Joe Biden would propose a large increase on the capital-gains tax for the wealthiest Americans.
A busy week of corporate earnings reports is also coming to a close.
What are major benchmarks doing?
Futures on the Dow Jones Industrial Average
fell 30 points, or 0.1%, to 33,679.
S&P 500 futures
were up 4.55 points, or 0.1%, at 4,132.25
rose 23.75 points, or 0.2%, to 13,774.
What’s driving the market?
Stock index futures suggest some recovery Friday, to end a down week for the market, after stocks turned south in early afternoon trade Thursday when Bloomberg News and others reported that Biden would propose a hike in the capital-gains tax rate to 39.6% from 20% for individuals making more than $1 million a year. While the reports dented sentiment, analysts noted that the proposal was in line with Biden’s campaign promises and noted expectations a hike would be scaled back in congressional negotiations.
“The 39.6% figure is very much in line with the campaign pledge and shouldn’t shock, but the fact we’ve seen selling of risk suggests the market is far more sensitive to bad news, and this will happen when froth is prevalent,” said Chris Weston, head of research at Pepperstone, in a note.
“Consolidation seems to the order here in the short-term and it feels like we’re at the mercy of a period of choppy price action,” he said.
Markit’s U.S. manufacturing and services purchasing managers index readings for April are due at 9:45 a.m. Eastern. Economists expect the manufacturing gauge to rise to 60.5 from 59.1, while the services index is expected to rise to 61.0 from 60.4. A reading of more than 50 indicates an expansion in activity.
March new-home sales figures are set for release at 10 a.m. Eastern and are expected to rise to an 888,000 seasonally adjusted annual rate from 775,000 in February.
Which companies are in focus?
shares were down 2.7% in premarket trade, despite a big earnings beat and raised annual guidance, as a large dip in data-center sales was offset by strength in sales of personal computers and a departing memory business.
Shares of Snap Inc.
rose 5% after the social-media company posted first-quarter results that surpassed analyst estimates.
shares were up 7% after the toy maker reported a narrower-than-expected quarterly loss and said its sales surged nearly 50%.
Boston Beer Co.
known for its Sam Adams-branded beers, reported earnings late Thursday that soared past analyst expectations, buoyed in part by sales of hard seltzers. Shares were up 6.7%.
Shares of Dow component Honeywell International Inc.
were off 1.6% after beating Wall Street estimates for earnings and revenues and revising its 2021 outlook.
shares rose 0.8% after the energy-services giant posted better-than-expected earnings for the first quarter.
Shares of American Express Co.
fell 4% after the card company’s first-quarter revenue fell short of expectations.
What are other markets doing?
The yield on the 10-year Treasury note
fell 2.4 basis points to 1.537%. Yields and bond prices move in opposite directions.
The ICE U.S. Dollar Index
a measure of the currency against a basket of six major rivals, fell 0.4%.
fell sharply in a move that some observers tied to tax jitters, with the digital asset falling below $50,000.
Oil futures edged lower, with the U.S. benchmark
off 0.1% at $61.37 a barrel.
Gold futures edged higher, with the June contract
up 0.7% at $1,794.80 an ounce.
In Europe, the Stoxx 600 index
and London’s FTSE 100
was were both down 0.6%.
In Asia, the Shanghai Composite
rose 0.3%, Hong Kong’s Hang Seng Index
jumped 1.1% and Japan’s Nikkei 225