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Wall Street's main indexes ended the week lower on Friday with
some investors taking profits after months of gains due to
economic data, mixed earnings and rising Treasury yields.
U.S. stocks have sharply rallied in 2023, with the benchmark S&P
500 clocking 16.6% gains year to date, fueled by optimism around
artificial intelligence and hopes of a soft landing for the
world's largest economy.
Both Bank of America and JPMorgan last week ditched their
forecasts for a U.S. recession.
Investors are focused on U.S. consumer price reading on Thursday
that could offer cues to the Federal Reserve's monetary policy
path, after an employment report on Friday re-ignited fears that
the central bank could keep rates higher for longer.
"In our view, the picture on the labor market remains mixed,"
Mark Haefele, chief investment officer at UBS Global Wealth
Management, said in a note.
"While the data does not support a rate hike from the Fed’s next
policy meeting on 20 September, the central bank will likely
want to see further softening."
Rising yields on U.S. Treasuries, that often dull the appeal for
stocks, also remained in focus for investors, with the yield on
the 10-year note creeping higher ahead of the Treasury
Department's bumper $103 billion refunding.
At 05:28 a.m. ET, Dow e-minis were up 62 points, or 0.18%, S&P
500 e-minis were up 14 points, or 0.31%, and Nasdaq 100 e-minis
were up 75.5 points, or 0.49%.
Megacap growth and technology stocks like Amazon.com and Nvidia
added 0.8% and 1.1%, respectively, in premarket trading, while
Apple, the world's most valuable firm, recovered 0.5% after
sharp losses in the previous session following its gloomy iPhone
sales report.
Overall, second-quarter earnings have been better-than-expected
so far, with 79.1% of the 422 S&P 500 companies that have
reported as of Friday beating analysts' estimates, according to
Refinitiv data.
Class B shares of Berkshire Hathaway gained 1.3% in trading
before the bell after the Warren Buffett-led conglomerate posted
its highest-ever quarterly operating profit.
Yellow Corp, a nearly 100-year-old U.S. trucking firm, filed for
Chapter 11 bankruptcy protection on Sunday, dragging its shares
25.2% lower.
(Reporting by Bansari Mayur Kamdar in Bengaluru; Editing by Maju
Samuel)
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