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Stocks rise, ending a difficult week on a high note

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Fed chairman Jerome Powell’s speech in Jackson Hole will be a major highlight of next week.

Graeme Jennings-Pool / Getty Images

US stocks were a little higher on Friday morning and wanted to end a week of sales on a positive note.

Shortly after opening that

Dow Jones industry average

rose 142 points, or 0.4%, while the

S&P 500

0.6% added and the

Nasdaq composite

increased by 0.9%.

Shares were in the red prior to the US market opening and continued selling off global stocks for the past three sessions. The Dow is down about 1.5% this week and is well on its way to a two-week winning streak.

A surge in worldwide cases of Covid-19, fueled by the more contagious Delta variant of the coronavirus, threatens the vivid narrative of global growth that has given power to markets this year.

“The delta option remains the top concern of investors right now, and along with the question of the vaccine’s diminishing effectiveness, the risks to the outlook are more pronounced than it was just a few months ago,” said Henry Allen, an analyst at Deutsche Bank.

In the meantime, investors continue to read Federal Reserve news for clues about future monetary policy. The July Federal Open Market Committee’s minutes of the July meeting indicated that the central bank could begin slowing its massive monthly asset purchases as early as this year – a pandemic-era move to inject liquidity into financial markets.

“Nervousness about a possible Fed tightening ahead of Chairman Powell’s Jackson Hole speech next week, along with a possible slowdown in Chinese growth, have further swayed investors and removed the narrative far from the reflation hopes that many saw in the first quarter “said Allen.

But a few words from Dallas Federal Reserve President Rob Kaplan enabled stocks to rebound this morning. Kaplan said he might reconsider his call for the Fed to quickly reduce its asset purchases if the proliferation of the Delta variant slows economic growth further.

In Europe, both the London-based FTSE 100 and the pan-European Stoxx 600 gained 0.4%. The Paris CAC 40 gained 0.3%, while the German DAX rose 0.1%. In Asia is Tokyo

Nikkei 225

fell 1% while the Hong Kong

Hang Seng

fell 1.8% and slipped into a bear market, and the

Shanghai composite

decreased by 1.1%.

“Asian markets continue the past 24 hours of weakness, with Japanese automakers being overwhelmed by Toyota’s decision to cut auto production in September,” said Michael Hewson, an analyst at broker CMC Markets.

Chinese stocks were also weakened by tough new online privacy laws, adding regulatory pressures to the country’s competitive technology sector. Shares in

Alibaba

down nearly 3% in Hong Kong.

Foot locker

(Ticker: FL) The stock rose 9.3% after reporting earnings of $ 2.21 per share, up estimates of $ 1.01 per share on revenue of $ 2.3 billion US dollar exceeded expectations of 2.1 billion US dollars.

Deer & Co.

(DE) The stock rose 2.3% after reporting earnings of $ 5.32 per share, which was an estimate of $ 4.58 on sales of $ 10.4 billion per share exceeded expectations of $ 10.3 billion.

Applied materials

(AMAT) shares plummeted 1.5% after reporting earnings of $ 1.90 per share, up estimates of $ 1.77 per share on sales of $ 6.2 billion -Dollar exceeded expectations of $ 5.9 billion.

Ross Stores

(ROST) shares fell 4.8% after reporting earnings of $ 1.39 per share, beating estimates of 96 cents per share on sales of $ 4.8 billion exceeded expectations of $ 4.5 billion.

working day

(WDAY) share rose 1.75% after

Oppenheimer

Resumption of coverage with an outperform rating.

Write to Jacob Sonenshine at [email protected]

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