US Stocks Mixed on Growing Virus Cases
U.S. futures are set to open mixed on Friday’s stock trading. This is amid caution as the country battles increasing numbers of Covid-19 cases, hampering efforts to reopen the economy. Bank stocks will be under pressure after the U.S. central bank imposed new restrictions on the sector.
Updates show S&P 500 Futures traded 8 points, or 0.3%, higher. Nasdaq Futures were up 30 points, or 0.3% and the Dow Futures contract dropped 19 points, or 0.1%.
US stocks on Wall Street closed higher on Thursday, with the Dow Jones Industrial Average up 1.2%. The S&P 500 index rose 1.1% and the Nasdaq Composite index added 1.1%.
The S&P 500 and DJIA are on course to record their second losing week in three. However, the Nasdaq is still set to post its fifth positive week in six.
At least 20 million people in the United States may already have been infected with Covid-19. This was according to the latest estimate by the Centers for Disease Control. It’s around 10 times higher than the reported figure.
This came as the states of Texas and Florida halted their reopening. That was as infections and hospitalizations surged. The U.S. registered a new daily record of over 37,000 new virus cases on Thursday.
US Stocks and the Fed
Banks will be in focus Friday after the Federal Reserve said that it would impose a cap on dividend payments. It also said it would halt share repurchases for the next three months.
It has imposed limits after the central bank’s latest stress tests on the sector showed significant capital losses for lenders. That’s when tested against the economic impact of Covid-19. It also required all banks to resubmit their capital plans later in their year.
Nike reported its first quarterly loss in the stock market in two years after hours Thursday. That’s with a sales decline of 38% year-over-year.
Digital sales increased 75%, representing about 30% of total revenue. The shopping public was channeled by lockdowns to Nike’s website for sneakers and workout gear.
Economic data will center around U.S. personal income and spending on Friday. Personal income in May is expected to have declined by 6% compared with a jump of 10% for April.
Spending figures may show a 9% increase compared with a 14% retraction in April. This was when some U.S. states started to reopen.
Oil prices rose, helped by signs of fuel demand recovering globally on Friday. Traders tend to overlook the increase in coronavirus infections in many U.S. states. They also overlook the recent build in inventories which suggest a revival in U.S. crude production.
Crude futures traded 0.8% higher at $39.03 a barrel while Brent contract rose 1.2% to $41.53.
Elsewhere, gold futures were up 0.2% to $1,773.50/oz. Moreover, EUR/USD traded at 1.1229, up 0.1%.
