Dow Jones Industrial average futures rose 350 points, or 1.0%. The move implies a more open 300 points. S&P 500 futures added 0.9%. The Nasdaq-100 futures also rose 0.8%.
Stocks related to the re-opening of the economy gained in the premarkets. United Airlines has increased by 2%, while Kohl’s was up 5%. Oil and energy stocks were among the biggest gainers in pre-market trading, with Devon Energy jump of nearly 5%. The Energy Select SPDR ETF has gained nearly 3% in pre-market.
The Dow, the S&P 500 and the Nasdaq Composite led in the session of Friday, on pace for their fourth weekly gain in five weeks. The Dow jones is up 1.9% for the week to date through Thursday’s close, while the S&P 500 has advanced 2.4% in this time. The Nasdaq has climbed more than 3% during this period of time.
On Thursday, the Dow closed just below the flatline, while the S&P 500 and the Nasdaq eked out small gains. The main average gyrated between gains and losses for most of the day. At one point, the Dow fell over 270 points.
A report Thursday showed initial US jobless claims totalled $ 1.5 million last week, with a Dow Jones estimate of 1.3 million.
“The number of new claims for unemployment insurance fell for the eleventh consecutive week, but this week the improvement has been much weaker, even compared to last week up on the revised figure,” said Ken Berman of Gorilla Trades. “While the May jobs report was much better than expected, this month is employment-related, the indicators were far from being brilliant, and that could mean that the pace of recovery is slowing down. ”
During this time, the number of cases of coronavirus continues to increase in some parts of the UNITED states, Texas, California, Arizona, and Florida have all indicated that there is more important than ever one-day increase.
Some investors fear a resurgence of cases of coronavirus could lead to states of iron, more stringent quarantine measures to contain the spread and thwart the expectations of a smooth economic recovery. To be sure, these increases come as a member of the ramp up to the test.
“The rally of the last few months have led to actions to reach within striking distance of record highs, but investors are struggling to reconcile upward momentum and less optimistic messages about the coming months,” said Lindsey Bell, chief investment strategist at Ally to Invest. “That, in concert with the concerns of a second wave of sars coronavirus and geopolitical tensions, has led to some serious indecision. ”
CNBC’s Yun Li contributed to this story.
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