The U.S. stock index futures changed slightly during Thursday’s overnight trading, when the S&P 500 posted a better-than-expected earnings day since March.
The futures contract with Dow Jones Industrial Average gained 36 points. The S&P 500 futures rose 0.11%, while the Nasdaq 100 futures rose 0.12%
The S&P 500 advanced 1.71% during regular trading, registering its best day since March 5th. The 30-stock benchmark was its best day since July 20th. The Nasdaq Composite gained 1.73% for its best day since May. All three average weeks are tracked to end in green.
These gains come in a strong start to the earning season. Eight members of the S&P 500 released quarterly results Thursday morning, each of which topped Wall Street expectations. Financial heavyweights Bank of America, Morgan Stanley and Citigroup were the names of the report.
“Banks have painted a strong and healthy picture of U.S. consumers,” noted Edward Moya, senior market analyst at Wonder. “The release of Wall Street reserves, moderation in trading revenue, increase in mixed loans and a consumer willing to take a loan cannot have a negative impact on the economy.”
Goldman Sachs, JB Hunt and PNC Financial are among the names that will release quarterly results on Friday.
Reading better than expected employment also increased the feeling. Last week’s weekly unemployment claims total 293,000, the Labor Department said Thursday, falling below 300,000 for the first time since the onset of the epidemic.
The gains came on Thursday despite reading high inflation, which some warned could hamper economic recovery. According to the Department of Labor, the consumer price index rose 0.4% in September and 5.4% year-on-year.
“One thing that is clear is that inflation has been consistently higher than expected over the summer and the Fed has begun to notice,” said Charlie Ripley, senior investment strategist at Allianz Investment Management.
“Higher inflation levels are making it harder for the Fed to ignore, and some market participants have questioned the ‘momentary’ approach to inflation … We believe that high inflation is forcing the Fed to come up with their exit strategy. High levels of financial stimulus,” he said. Added.
In the face of economic data, retail sales numbers will be released Friday at 3:30 p.m., when the University of Michigan Consumer Sentiment Readings will hit the tape at 10 a.m.
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