U.S. markets look ready to open higher Friday, building on solid gains from the last two days. Positive economic reports and strong earnings results are helping ease worries over President Trump’s trade policies.
3M (NYSE:MMM) shares jumped 2.7% pre-market after beating Q2 expectations and raising its sales outlook. American Express (NYSE:AXP) also impressed with better-than-expected quarterly earnings, supporting a positive market mood.
Netflix (NASDAQ:NFLX), however, dropped 2.9% pre-market despite beating revenue forecasts, due to concerns about shrinking profit margins later this year.
Housing stocks could see support following a Commerce Department report showing a stronger-than-expected rebound in new home construction for June.
On Thursday, the Nasdaq and S&P 500 both hit record closes, with gains of 0.7% and 0.5%, respectively, while the Dow climbed 0.5%.
Retail sales climbed 0.6% in June, far above expectations, and jobless claims fell to a three-month low, underscoring a resilient U.S. economy. Import prices rose modestly, less than anticipated.
Tech, oil services, finance, steel, and software stocks led gains, while healthcare and pharma lagged behind.
Chris Zaccarelli, CIO of Northlight Asset Management, pointed out that strong consumer spending and a healthy job market continue to fuel the stock rally, despite trade tensions and lofty valuations.
This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.