Futures Pointing To Extended Rebound On Wall Street

Following the rebound seen in the previous session, stocks are likely to see further upside in early trading on Friday. The major index futures are currently pointing to a higher open for the markets, with the Dow futures up by 143 points.

Stocks are poised to extend the upward seen during trading on Thursday, which helped the major averages snap a three-day losing streak.

Optimism about the economic outlook may contribute to continued strength on Wall Street after yesterday’s jobless claims data.

The Labor Department report showed initial jobless claims once again dropped to their lowest level in well over a year.

The data further reinforced the view that the disappointing monthly employment report for April was an anomaly and not a sign of an economic downturn.

Shortly after the start of trading, the National Association of Realtors is scheduled to release its report on existing home sales in the month of April. Existing home sales are expected to jump by 2.0 percent.

U.S. stocks snapped a three-day losing streak and closed higher on Thursday, buoyed by data showing a drop in jobless claims last week. Technology stocks posted strong gains, contributing significantly to the market’s strong close.

Bitcoin’s rebound after a terrible setback in the previous session aided sentiment. A few encouraging earnings announcements helped as well.

The major averages all closed notably higher. The Dow came off day’s high of 34,233.40, but still closed with a fairly decent gain of 188.11 points or 0.6 percent at 34,084.15. The S&P 500 ended up by 43.44 points or 1.1 percent at 4,159.12, while the Nasdaq settled at 13,535.74, gaining 236 points or 1.8 percent.

In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Friday. Japan’s Nikkei 225 Index advanced by 0.8 percent, while China’s Shanghai Composite Index fell by 0.6 percent.

Meanwhile, the major European markets have all moved to the upside on the day. While the U.K.’s FTSE 100 Index is just above the unchanged line, the German DAX Index is up by 0.4 percent and the French CAC 40 Index is up by 0.6 percent.

In commodities trading, crude oil futures are jumping $1.11 to $63.05 a barrel after tumbling $1.41 to $61.94 a barrel on Thursday. Meanwhile, after inching up $0.40 to $1,881.90 an ounce in the previous session, gold futures are rising $3.80 to $1,885.70 an ounce.

On the currency front, the U.S. dollar is trading at 108.71 yen versus the 108.78 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.2198 compared to yesterday’s $1.2228.

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