By Sara Sjolin and Anora Mahmudova, MarketWatch
Nasdaq set to open in record territory
U.S. stocks were set for a slightly higher open on Friday 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 6.75 points, or 0.1%, to 5,449.50.
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 $1.0699, 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 [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 will give 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%. The yield on the 10-year Treasury note was
unchanged at 2.23%.
(END) Dow Jones Newswires
April 21, 2017 09:10 ET (13:10 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.