Stock market today: In premarket, Wall Street inches closer toward erasing last week’s losses
Sep 12, 2024, 10:01 PM
FILE - American flags hang on the front of the New York Stock Exchange on Sept. 11, 2024, in New York. (AP Photo/Peter Morgan, File)
Credit: ASSOCIATED PRESS
(AP Photo/Peter Morgan, File)
Wall Street inched toward modest gains before the open Friday as markets continue to erase last week’s sweeping losses.
Futures for the S&P 500 climbed 0.2% before the bell Friday while futures for the Dow Jones Industrial Average were 0.1% higher.
All the major U.S. indices are up this week and within reach of negating last week’s technology-led wipeout, markets’ worst week in a year-and-a-half.
Optimism is high that the Federal reserve is poised to cut its main lending rate next week for the first time in four years, though most experts are expecting a traditional quarter-point cut, not the half-point that some were previously calling for.
Recent government data have shown further progress on trimming inflation closer to the Fed’s 2% goal. Inflation in the U.S. hit a four-decade high in 2022, inspiring the U.S. central bank to institute a series of rate increases meant to cool the red-hot economy that developed in the aftermath of the brief but sharp pandemic recession.
In equities trading Friday, graphic design software company Adobe shed 8.5% after it beat analysts’ third-quarter earnings targets but issued tepid guidance that disappointed investors.
On the flip side, software maker Oracle’s shares jumped again after company executives told analysts at a conference that it was raising its 2026 and 2029 revenue guidance. Oracle is forecasting 2026 revenue of $66 billion and 2029 revenue of more than $104 billion. The forecast came just days after the company reported strong sales and profit in its most recent quarter. Its shares rose 6.5% in premarket, adding to its whopping 53% gain so far this year.
Boeing tumbled 4% after aircraft assembly workers walked off the job early Friday. Union members voted overwhelmingly to go on strike and reject the troubled aerospace giant’s tentative contract that would have increased wages by 25% over four years.
European markets were mostly higher at midday after the European Central Bank reduced interest rates again on Thursday to support sluggish growth as inflation continues to subside. France’s CAC 40 rose 0.2%, Germany’s DAX added 0.5% and Britain’s FTSE 100 gained 0.3%.
The euro cost $1.1087, up from $1.1073.
In Asia, Chinese authorities imposed a six-month ban on the accounting firm PwC on Friday and fined it over 400 million yuan ($56.4 million) for its involvement in the audit of Evergrande, the world’s most indebted property developer, which has collapsed. The punishment is the heaviest yet for international accounting firms operating in China.
Hong Kong’s Hang Seng rose 0.8% to 17,369.09, while the Shanghai Composite was down 0.5% at 2,704.09 after China’s legislature announced Friday that it would raise the retirement age from 60 to 63 years for men and from 50 to 55 or 58 years for women, according to state media. The Chinese Academy of Sciences said the pension system may run out of money by 2035 because of the current economic slump and an aging population.
China is also set to release its monthly economic data on Saturday, with market predictions that the three key indicators — industrial production, fixed asset investment and retail sales — will show a slowdown.
Japan’s benchmark Nikkei 225 slipped 0.7% to close at 36,581.76 after data released Friday showed the nation’s industrial production increased 2.9% year-on-year in July, signaling improved demand in the manufacturing sector.
The dollar fell to 140.83 yen from 141.79 yen, adding pressure on Japan’s exports.
“The Bank of Japan is not expected to make any rate move at its meeting next week, but there may be some hawkish pricing brewing for policymakers to lay the groundwork for further rate hikes in December and beyond,” said IG market analyst Yeap Jun Rong.
Elsewhere, Australia’s S&P/ASX 200 rose 0.3% to 8,099.90. South Korea’s Kospi picked up 0.1% to 2,575.41.
In energy trading, benchmark U.S. crude gained 72 cents to $69.69 a barrel. Brent crude, the international standard, added 62 cents to $72.59 a barrel.
On Thursday, the S&P 500 rose 0.7% to 5,595.76, climbing back to within 1.3% of its record set in July following a shaky summer. It’s on track for a fourth winning week in the past five.
The Dow Jones Industrial Average added 0.6% to 41,096.77, and the Nasdaq composite gained 1% to 17,569.68.
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