MARKET SNAPSHOT: Stock Market Set For Small Opening Gains On Revived Tax-cut Hopes
U.S. stocks head for firm weekly gains
U.S. stocks were set for a slightly higher open on Friday, boosted by revived optimism over the timing of President Donald Trump's plans for a tax overhaul, though investors remained cautious ahead of the closely watched presidential election in France.
Futures for the Dow Jones Industrial Average inched 12 points higher, or 0.1%, to 20,540, while those for the S&P 500 index added 2.65 points, or 0.1%, to 2,354.75. Futures for the Nasdaq-100 index climbed 8.75 points, or 0.2%, to 5,451.50.
The indications of a positive open come after U.S. stocks ended higher on Thursday (http://www.marketwatch.com/story/dow-set-to-claw-its-way-back-from-triple-digit-loss-as-oil-prices-rebound-2017-04-20), buoyed by a deluge of stronger-than-expected corporate earnings reports and economic data. Comments by Treasury Secretary Steven Mnuchin, who said that President Donald Trump's tax overhaul will be unveiled in the near future, also bolstered sentiment.
"A move by Trump to challenge steel imports and positive tax reform rhetoric from Treasury Secretary Mnuchin revived hopes for the fabled Trump 'reflation trade,'" said analysts at Accendo Markets, in a note.
"Markets have also taken in their stride another terror attack in the French capital just days before Sunday's first round of the Presidential election," they added.
See:5 charts show what the French presidential election means for financial markets (http://www.marketwatch.com/story/5-charts-show-what-the-french-presidential-election-means-for-financial-markets-2017-04-21)
The S&P 500 index on Thursday ended 0.8% higher, while the Dow average gained 0.9%. The Nasdaq Composite Index added 0.9% to end at a record close. As of Thursday's close, the benchmarks were set for weekly gains in the range of 0.6% to 1.9%.
Late Thursday, a gunman opened fire (http://www.marketwatch.com/story/gunman-slain-after-killing-paris-police-officer-trump-suggests-terrorism-2017-04-20) on the Champs-Élysées boulevard in Paris, killing a police officer and wounding two others. European stocks (http://www.marketwatch.com/story/french-stocks-slide-after-paris-attack-fuels-election-uncertainty-2017-04-21) were mixed, with France's CAC 40 index down 0.2%.
The euro was trading at $1.0701, down from $1.0718 late Thursday in New York.
The attack could give a late-campaign surge in support for anti-immigration, far-right candidate Marine Le Pen in the tight presidential race, analysts said. Le Pen has vowed to hold a referendum on France's membership of the European Union, fueling fears of a breakup of the bloc. One of her three key rivals, far-left euroskeptic Jean Luc Melenchon, has also pledged to renegotiate EU treaties and hold a referendum.
"A Le Pen (far right) & Mélenchon (far left) result would surely raise alarms. Markets look to be pricing in something between the two with [centrist candidate Emmanuel] Macron and Le Pen progressing to the second round in [in two weeks] time, although the last year of global political events has taught us to expect the unexpected," the Accendo analysts said.
Read:Here's how France's hotly contested election could spark market turmoil (http://www.marketwatch.com/story/heres-how-frances-hotly-contested-election-could-spark-market-turmoil-2017-04-19)
(http://www.marketwatch.com/story/heres-how-frances-hotly-contested-election-could-spark-market-turmoil-2017-04-19)Economic news: Wrapping up the data calendar for the week, flash purchasing managers indexes for April are due at 9:45 a.m. Eastern Time.
Existing home sales for March come out at 10 a.m.
In Federal Reserve news, Minneapolis Fed President Neel Kashkari will moderate a discussion at Hamline University in St. Paul, Minn. at 9:30 a.m. Eastern.
Fed Vice Chairman Stanley Fischer gives an interview on CNBC between 11 a.m. and 11:30 a.m. Eastern.
Earnings season: The results season continued at full speed on Friday with General Electric Co.(GE) reporting earnings ahead of expectations (http://www.marketwatch.com/story/general-electric-profit-rises-beat-expectations-2017-04-21). Shares were up 0.4% ahead of the bell.
Honeywell International Inc.(HON) also beat forecasts (http://www.marketwatch.com/story/honeywell-tops-profit-and-sales-estimates-2017-04-21), sending the shares up 2.5%.
Schlumberger Ltd.(SLB) , on the other hand, fell 0.5%, after revenue missed Wall Street estimates (http://www.marketwatch.com/story/schlumbergers-stock-slips-as-revenue-rises-but-comes-up-short-of-expectations-2017-04-21).
After the market closed on Thursday, Visa Inc.(V) reported better-than-expected revenue (http://www.marketwatch.com/story/visa-results-better-than-expected-but-profit-falls-2017-04-20), sending shares 2.7% higher in Friday's premarket trade.
Shares of Mattel Inc.(MAT) slumped 8.2% before the market open after the toy maker's quarterly results out late Thursday fell short of Wall Street estimates (http://www.marketwatch.com/story/mattel-shares-drop-after-results-fall-short-of-street-view-2017-04-20).
Other markets: Stocks in Asia closed mainly higher (http://www.marketwatch.com/story/led-by-nikkei-asian-markets-build-on-overnight-gains-2017-04-20), boosted by the higher close in the U.S. on Thursday.
Oil and gold prices were largely flat. The dollar was little changed against other major currencies, with the ICE Dollar Index up less than 0.1%.
(END) Dow Jones Newswires
April 21, 2017 08:01 ET (12:01 GMT)