Futures Rally on U.S. Fed Hopes - InvestingChannel

Futures Rally on U.S. Fed Hopes

Futures for Canada’s main stock index rose on Friday, helped by gains in oil and gold prices, ahead of a speech by U.S. Federal Reserve Chair Jerome Powell at the Jackson Hole economic conference later in the day.

The TSX Composite Index dropped 83.17 points to wind up Thursday at 20,504.15

The Canadian dollar eked up 0.09 cents to 79.84 cents U.S.

September futures were up 0.3% Friday.

National Bank of Canada raises the rating on Bird Construction to outperform from sector perform

Acumen Capital raised the rating on Leucrotta Exploration to buy from speculative buy.

Acumen Capital also raised the rating on Altura Energy to speculative buy from hold.

On the economic schedule, Statistics Canada’s raw materials price index was up 2.2% on a monthly basis in July and 37.7% year over year. in July, while its industrial product price index fell 0.4% month over month in July, and was up 15.4% year over year.

ON BAYSTREET

The TSX Venture Exchange dropped 9.17 points Thursday to 875.57.

ON WALLSTREET

Stock futures rose on Friday ahead of the Federal Reserve’s annual Jackson Hole symposium with investors looking for more details into the central bank’s plans to taper monetary stimulus.

Futures for the Dow Jones Industrials jumped 68 points, or 0.2%, to 35,228.

Futures for the S&P 500 acquired 10 points, or 0.2%, to 4,476.50.

Futures for the NASDAQ Composite Index gained 38.25 points, or 0.3%, to 15,313.

The three major stock averages are all set to close the week in the green. The Dow is up 0.3% week-to-date, while the S&P 500 is up 0.6% and the NASDAQ is 1.6% higher.

Shares of Gap gained 8% in pre-market trading after the apparel retailer’s quarterly earnings report beat on top and bottom lines, while Peloton shares dropped after the exercise equipment company’s fourth-quarter financial results missed Wall Street estimates. Peloton fell 7%.

The Fed summit will be held virtually this year, with Chair Jerome Powell’s speech taking center stage Friday morning at 10:00 a.m. ET. The central bank is trying to prepare markets for when it cuts back its $120 billion in monthly bond purchases, likely this year.

With the stock market near records, investors are betting the Fed can remove stimulus without causing a so-called taper tantrum that shoots rates higher rapidly and knocks equities.

Market participants also monitored new developments in Afghanistan, which appeared to weigh on investor sentiment. The Pentagon on Thursday confirmed that explosions near Hamid Karzai International Airport in Afghanistan killed 13 U.S. service members and wounded 18.

Investors also await a consumer sentiment reading to be released Friday morning.

Overseas, in Japan, the Nikkei 225 index dumped 0.4% Friday, while in Hong Kong, the Hang Seng index sank nearly eight points.

Oil prices added $1.49 to $68.91 U.S. a barrel.

Gold prices picked up two dollars to $1,789.50 U.S. a pound.