Futures edge higher with all eyes on Trump inauguration
(Reuters) – U.S. stock index futures edged up on Friday, with the S&P 500 and the Dow looking set to log their biggest weekly advances since November, while investors awaited a wave of policy changes under the incoming Trump administration.
At 5:33 a.m. ET, Dow E-minis were up 127 points, or 0.29%, S&P 500 E-minis were up 19.75 points, or 0.33%, and Nasdaq 100 E-minis were up 90 points, or 0.42%.
Better-than-expected earnings from major banks and signs that underlying inflation was cooling have prompted risk taking on Wall Street this week, putting the benchmark S&P 500 and the blue-chip Dow on track to log their steepest weekly rises since the U.S. election week.
The S&P 500 banking index and regional banks have outperformed the main indexes this week, logging advances of about 5.8% and 6.4%, respectively.
Quarterly reports from Truist Financial (NYSE:TFC), SLB, Fastneal and State Street (NYSE:STT) are on tap before markets open.
Of the 28 companies in the S&P 500 that have reported fourth-quarter earnings as of Wednesday, 82.1% have surpassed estimates, according to data compiled by LSEG.
Also aiding risk sentiment was a dip in yields on longer-dated bonds that had touched more than 10-month highs earlier in the week. Yield on the benchmark 10-year note is now at a more than one-week low at 4.6%. [US/]
President-elect Donald Trump is expected to take over the White House on Monday and investors will be on edge for any insights into his plans on tax cuts, tariffs, loose regulations and immigration at his inauguration speech, that analysts widely expect could boost the economy.
The S&P 500 has gained nearly 3% to date since Election Day.
However, concerns prevail that his plans on tariffs and immigration could spark a trade war and fresh price pressures at a time when the economy is already strong, which could force the Federal Reserve to stave off further monetary policy easing.
According to data compiled by LSEG, traders are expecting the central bank to leave interest rates on hold at its meeting later this month and see the first cut coming in June. They had all but priced out any rate cuts for 2025 earlier in the week.
Before markets open, investors will assess data on building permits, housing starts and industrial production for the month of December, that could help gauge the health of the world’s largest economy.
Eyes are also on developments around the ceasefire deal to the Middle East conflict, with the Israeli cabinet due to give final approval, following concerns the accord may be delayed.
Among others, Salesforce (NYSE:CRM) rose 1.9% after brokerage TD Cowen upgraded the software provider to “buy” from “hold”.
J.B. Hunt Transport Services lost 9.8% after the trucking firm missed Street estimates for fourth-quarter profit, as high expenses and a lower truck count weighed on revenue.
