U.S. stocks were attempting to end another brutal week with a bounce on Friday, with sentiment getting a lift from a cut in one of China’s key lending rates, though the Dow Jones Industrial Average remained on track for its longest weekly losing streak since 1932.
How are stocks trading?
The Dow Jones Industrial Average
rose 206 points, or 0.6%, to 31,460.
The S&P 500
was up 32 points, or 0.8%, at 3,933.
The Nasdaq Composite
gained 112 points, or 1%, to trade at 11,501.
On Thursday, the Dow industrials and S&P 500 booked their lowest closes since March 2021, according to Dow Jones Market Data. The Dow finished more than 15% below its Jan. 4 record finish, while the S&P 500 ended 18.7% below its Jan. 3 record —- not far off the 20% threshold that marks a bear market.
What’s driving markets?
The People’s Bank of China on Friday cut in its rate on five-year loans, aimed at shoring up weak housing sales by cutting mortgage costs. The country has been battling COVID outbreaks, with lockdowns in industrial hubs such as Shanghai blamed for weak factory and consumer activity data in April.
“The news out of China and the successful test of the S&P 500 holding support is poised to pull the index out of the danger zone. We reiterate; for now, we think the market has placed in a bottom,” Peter Cardillo, chief market economist at Spartan Capital, told clients in a note.
He noted the index came close to that support level of 3,850, but didn’t get there, instead hovering around 3,860.
Major U.S. stock indexes are likely facing yet another week of losses. The Dow industrials is set for its eighth-straight weekly loss, which would be its longest since April 1932, according to Dow Jones Market Data.
Losses have come amid concerns about whether soaring inflation can be brought under control by the Federal Reserve without derailing the economy.
The U.S. economic data calendar is empty for Friday, but next week will bring another round of inflation data, personal consumption expenditure prices excluding food and energy.
Which companies are in focus
Shares of Ross Stores Inc.
slumped nearly 22% after the retailer became the latest to report disappointing quarterly results and trim its outlook, blaming higher inflation and rising freight and wage costs.
Deere & Co.
shares slipped 7.5% after the agriculture, construction and forestry equipment maker reported better-than-expected fiscal second-quarter profit and revenue.
Applied Materials Inc.
stock slipped 1.6% after the chip-equipment maker reported a miss on profit, revenue and forecast amid continued supply chain woes.
the athletic footwear and apparel retailer, saw its shares rise more than 9% after it reported first-quarter profit that beat expectations.
How are other assets trading?
The yield on the 10-year Treasury note
edged down 0.5 basis point to 2.848%. Yields and debt prices move opposite each other.
The ICE U.S. Dollar Index
was off 0.8% near $30,100.
Oil futures rose, with the U.S. benchmark
up 0.7% near $111 a barrel. Gold futures
were flat near $1,841.
The Stoxx Europe 600
rose 1.4%, while London’s FTSE 100