Gains set to continue for Wall Street from Thursday
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U.S. stock futures were moving modestly higher in early trade on Friday, as investors weighed up the implications of a surprising result in the U.K. election as a dramatic week of events drew to a close.
Dow Jones Industrial Average futures rose 27 points, or 0.1%, to 21,161, while S&P 500 futures gained 2.8 points, or 0.1%, to 2,433.25. Nasdaq-100 futures added 3.75 points to 5,896.75.
U.S. stocks managed modest gains on Thursday, with the Dow industrials less than 0.1% higher and the S&P 500 up 0.65 point. The Nasdaq Composite rose 0.4%, closing at a record.
In that session, equities nabbed mostly modest gains after investors shrugged off the testimony of former FBI Director James Comey (http://www.marketwatch.com/story/here-are-the-key-takeaways-from-comeys-testimony-2017-06-08-17103012) in front of the U.S. Senate Intelligence Committee and its potential threat to destabilize U.S. President Donald Trump. Banks and uitilties rose as the idea of the so-called reflation trade seemed to show signs of revival.
That reflation trade is linked to investor optimism over the expectations for growth-friendly policies from Trump.
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U.S. stock futures were tracking gains in Europe, where the FTSE 100 index moved 0.6% higher, getting a boost (http://www.marketwatch.com/story/ftse-100-futures-swing-higher-as-pound-sinks-to-7-week-low-2017-06-09) as the British pound slumped (http://www.marketwatch.com/story/pound-tumbles-to-7-week-low-as-uk-exit-poll-points-to-hung-parliament-2017-06-08)on the election result. With results in for all but a few seats in the U.K. general election, the vote has ended in a "hung parliament," (http://www.marketwatch.com/story/uk-general-election-results-in-a-hung-parliament-2017-06-09) where no single party holds a majority.
See:'Worst possible outcome' -- analysts react to U.K. early election results (http://www.marketwatch.com/story/worst-possible-outcome-analysts-react-to-uk-early-election-results-2017-06-08)
U.K. Prime Minister Theresa May has reportedly said she would not step down (http://www.marketwatch.com/story/uk-prime-minister-theresa-may-says-she-wont-resign-after-election-reports-2017-06-09), amid pressure for her to quit after what many see as a disastrous election campaign. Instead, she is looking to form a minority government, where her Conservative Party would need to rally outside support in each parliamentary vote.
The lack of a clear winner in the ballot also creates many questions for the Brexit process, analysts said. May called the election as a way to strengthen her hand ahead of negotiations for the U.K. to exit from the European Union. She had faced hurdles in parliament to her approach.
The only top-tier economic data scheduled for release Friday is an update on wholesale inventories for April, due at 10 a.m. Eastern Time.
Other markets: The British pound sank to seven-week low against the dollar, dropping to $1.2724 from $1.2957 in late trading on Thursday. The dollar was firmer across the board (http://www.marketwatch.com/story/dollar-rises-pound-hits-7-week-low-as-uk-heads-for-hung-parliament-2017-06-09), with the U.S. dollar index , which compares the dollar to a half-dozen major rivals, rising to 97.42 from 97.02 late Thursday.
Crude oil prices (http://www.marketwatch.com/story/oil-prices-pinned-down-by-strong-dollar-supply-worries-2017-06-09) traded mostly flat, while gold edged lower.
In Asia (http://www.marketwatch.com/story/nikkei-returns-to-20000-as-asian-markets-warily-eye-uk-election-2017-06-08) , the Nikkei 225 index gained on yen weakness, returning to the 20,000 level, with other markets mixed.
(END) Dow Jones Newswires
June 09, 2017 04:50 ET (08:50 GMT)