U.S. stock futures found support in upbeat retails sales and inflation numbers Friday with the main indexes on track to set fresh records and post weekly gains.
Sales at U.S. retailers jumped by more than expected in June suggesting a sharp rebound in growth in the second quarter. Meanwhile consumer prices rose 0.2% in June — the fourth straight increase.
Earlier, futures struggled for direction after a terror attack in France left more than 80 people dead, overshadowing better-than-expected growth data from China.
Futures for the Dow Jones Industrial Average YMU6, +0.18% rose 27 points, or 0.2%, to 18,454, while those for the S&P 500 index ESU6, +0.19% inched 3 points higher to 2,160. Futures for the Nasdaq-100 index NQU6, +0.12% advanced 3 points to 4,592.
The dip lower came in the aftermath of Thursday night’s killing of at least 84 people in Nice, France, when a truck driver barreled through Bastille Day revelers who were gathered at the Promenade des Anglais in the Riviera city.
French President François Hollande said the scene had “undeniable traits of terrorism,” and he extended the country’s state of emergency that has been in place since the Paris terrorist attacks in November. The truck driver, believed to be a 31-year old French-Tunisian, was shot dead by the police. No group has claimed responsibility for the attack.
France extends state of emergency after truck attack
French President François Hollande extended the country’s state of emergency, in place since the Paris attacks in November, by three months following a deadly truck attack.
“Better than expected Chinese economic data has driven a continuation of the risk recovery across forex that we have seen in the past few days, whilst gold is still under corrective pressure,” said Richard Perry, analyst at Hantec Markets, in a note.
“However, following another terrorist attack in France overnight risk appetite is just being held back and there may be a slight shift towards some of the safer haven plays,” he added.
Chinese growth data showed the country’s gross domestic product grew 6.7% in the second quarter, beating forecasts of a 6.6% reading. The world’s second-largest economy also expanded at 6.7% in the first quarter.
U.S. stocks on Thursday extended gains, with the S&P 500 index SPX, +0.23% closing at an all-time high for a fourth straight day and the Dow average DJIA, +0.24% ending at a record for a third straight session.
U.S. economic news: Consumer prices rose 0.2% in June — the fourth straight increase — as the cost of gasoline, rent and medical care continued to go up, according to a government index that tracks the cost of living.
Sales at U.S. retailers rose 0.6% in June, led by a surge in spending at home-and-garden centers and online stores, the government said Friday.
Meanwhile, a reading of New York-area manufacturing conditions retreated in July, and analysts said it could be the first sign of the impact of the Brexit vote on the U.S. economy.
Industrial production and capacity utilization, both for June, come out at 9:15 a.m., followed by consumer sentiment for July and business inventories for May at 10 a.m.
Among Federal Reserve speakers, St. Louis Fed President James Bullard and Minneapolis Fed President Neel Kashkari will discuss the issue of too-big-to-fail banks at the Official Monetary and Financial Institutions forum at 1:15 p.m. Eastern.
Earnings: Following J.P. Morgan Chase & Co.’s JPM, +0.45% better-than-forecast earnings on Thursday.
Citigroup Inc. C, +1.08% reported second-quarter results that beat estimates. Second-quarter profit declined to $4 billion from $4.65 billion compared with the same period last year, but the results on a per-share basis, $1.24, beat an average estimate of analysts polled by FactSet of $1.10. Shares of the bank rose 0.7% in premarket trade.
Wells Fargo & Co. WFC, -0.77% reported a slip in second-quarter profit, but the results were in line with expectations, disappointing investors. The San Francisco-based bank said profit was $1.01 a share in the second quarter, compared with $1.03 a share during the same period last year. Shares slipped about 1% in premarket trade.
Movers and shakes: U.S. airlines stocks were getting hit in the terror aftermath, as concerns rose the attacks could further deter people from traveling.
Shares of Delta Air Lines Inc. DAL, -1.44% fell 2.3% premarket, American Airlines Group Inc. AAL, -0.75% dropped 1.9%, United Continental Holdings Inc. UAL, -0.67% lost 1.4% and Southwest Airlines Co. LUV, -0.05% gave up 1.2%.
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