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The
blue-chip Dow outperformed other Wall Street indexes on
Thursday, notching its longest winning streak in almost six
years, supported by gains in Johnson & Johnson after the
healthcare conglomerate's strong forecast.
The S&P 500 and Dow were on track to end the week higher, while
the tech-heavy Nasdaq lagged after sharp losses in the previous
session as earnings reports from Tesla and Netflix failed to
dazzle.
The megacap electric automaker recovered 1.5% in premarket
trading on Friday, while the streaming video company added 0.3%.
The Nasdaq has risen 34.4% this year, supported by a sharp rally
in megacap growth and technology names on optimism over
artificial intelligence, a relatively resilient U.S. economy and
expectations the end of the Federal Reserve's aggressive rate
hike cycle was on the horizon.
Morgan Stanley raised U.S. economic growth forecast for the year
on a strong industrial sector and more public investment in
infrastructure and expects a more "comfortable" soft-landing for
the economy.
While the Fed is widely expected to go for a 25 basis point hike
at its July 25-26 meeting next week, market participants have
been mixed as to where it will go in the ensuing months.
"We expect Powell to cautiously avoid implying that the FOMC has
already reached an agreement, but (we) are confident that he
does want to slow the pace and that the FOMC will end up
skipping in September," said David Mericle, chief U.S. economist
at Goldman Sachs, in a note.
At 5:30 a.m. ET, Dow e-minis were up 35 points, or 0.1%, S&P 500
e-minis were up 8.75 points, or 0.19%, and Nasdaq 100 e-minis
were up 52.5 points, or 0.34%.
American Express inched up 0.4%, while top oilfield services
firm SLB slipped 0.3% in thin trading ahead of their
second-quarter results due later in the day.
Investors were also awaiting a special rebalancing of the
multi-trillion dollar Nasdaq 100, which is due at the close of
trading on Friday.
(Reporting by Bansari Mayur Kamdar in Bengaluru; Editing by
Shinjini Ganguli)
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