Stock futures rose Friday after the S&P 500 tried to end a seven-week losing streak.
Futures on Dow Jones Industrial Average rose 34 points or 0.1%. Futures on the S&P 500 and Nasdaq 100 gained 0.3% and 0.5% respectively.
The Dow, S&P 500, and Nasdaq Composite are all on track to finish the week higher. The Dow is up 4.4% while the S&P 500 is 4% better and the Nasdaq Composite is up 3.4%. Thursday saw a large portion of these gains as all three averages rose due to strong retail earnings lifting sentiment.
The averages are still well below their highs. The Nasdaq Composite is in the bear market territory, while the S&P 500 briefly fell more than 20% from its record last week.
After Thursday’s close, the Nasdaq is down 27.6% compared to its record, while S&P 500 & Dow are down by 15.8% & 11.7%, respectively.
“We believe there is a good chance of some more strength. This is a classic bear-market rally or bounce from the bottom,” Troy Gayeski (chief market strategist at FS Investments) said Monday on CNBC’s “Closing Bell, Overtime”. “Inflation expectations are now overblown.”
Friday’s retail earnings were a continuing topic of discussion for investors. After Ulta Beauty reported better-than-expected quarterly results, Ulta Beauty shares rose by 8% in premarket. Gap lost nearly 20% due to ‘s reduction of its profit guidance.