US Stocks Strive To Keep Winning Run Alive As Kamala Harris Prepares To Unveil Economic Policy: Analyst Says 'Risk-On' Sentiment Will Persist Until This Event

Wall Street appears on track to build on gain as expectations concerning a continued moderation in inflation and soft-landing gain ground. The major index futures point to a modestly higher open on Friday as the S&P 500 and the Nasdaq Composite indices look to extend their six-day winning run. Vice President Kamala Harris, who is running for the presidency, is due to formally announce her economic policy at the North Carolina rally scheduled for Friday.

The market could draw cues from her speech, as traders assess the implications of the policy proposals for the various sectors and stocks. A sneak peek provided by the Democratic Party’s nominee already suggests an accent on residential construction. A consumer sentiment reading and a speech by a Federal Reserve official could also impact sentiment.

Futures	Performance (+/-)
Nasdaq 100	+0.16%
S&P 500	+0.02%
Dow	+0.05%
R2K	-0.41%

Cues From Last Session:

A set of benign economic data accelerated the market rally on Thursday, with the S&P 500 and the Nasdaq Composite indices settling higher for a sixth straight session. Retail sales jumped more than expected in July with the upside commendable even after giving effect the two-tenths of a percentage point downward revision to the June number. The upside was fueled by auto sales. Retail sales growth that excludes autos also was a healthy 0.4%.

Also allaying growth concerns were an unexpected decline in weekly jobless claims and a not-so-steep contraction as expected in manufacturing activity in the New York and Philadelphia regions.

The major averages gap opened higher and saw a steady rise until the afternoon before going about a consolidation move for the rest of the session. The Nasdaq Composite and the Dow Industrials hit fresh two-week highs, while the S&P 500 ended at its highest level since July 23.

All but two of the 11 S&P sectors advanced, led by consumer discretionary and IT stocks, while defensive utility and real estate stocks moved to the downside.

Index	Performance (+/)	Value
Nasdaq Composite	+2.34%	17,594.50
S&P 500 Index	+1.61%	5,543.22
Dow Industrials	+1.39%	40,563.06
Russell 2000	+2.45%	2,135.47

Insights From Analysts:

The market rally may have further legs, according to Fund Strat Head Of Research Tom Lee. “While bottoms are a ‘process,’ a good July Core CPI tilts ‘risk-on’ at least until Jackson Hole (8/22-8/24),” said the strategist.

Fund manager Louis Navellier is also positive about the market trajectory, stating that “Market momentum is alive and well.”

Data reinforces the resilience of consumers and the labor market, the fund manager said. “While this may give the Fed pause on how quickly to trim rates, it doesn’t appear that elevated rates are restraining the economy as much as some conclude, and leaves dry powder for the potential slowdown that continues to be pushed forward quarter after quarter,” he added.

Upcoming Economic Data:

• The Commerce Department is scheduled to release the housing start and building permits report for July at 8:30 a.m. EDT. Economists, on average, expect housing starts to come in at a seasonally-adjusted annual rate of 1.34 million units for July, down only slightly from June’s rate of 1.35 million units. Building permits – a measure of future starts may have declined from 1.45 million units in June to 1.42 million units in July.
• The University of Michigan is set to release the results of its preliminary consumer sentiment survey at 10 a.m. EDT. The consensus estimate calls for the headline consumer sentiment to come in at 66.6 for August, slightly up from 66.4 in July. The forward inflation expectations readings of the report may also evince some interest.
• Chicago Fed President Austan Goolsbee is scheduled to speak at 1:25 p.m. EDT.

See Also: How To Trade Futures

Stocks In Focus:

• Applied Materials, Inc. MAT fell nearly 3% in premarket trading following the chip equipment maker’s quarterly results, and H&R Block, Inc. HRB climbed over 9.5% on earnings.
• Flowers Foods, Inc. FLO rose nearly 6% ahead of its earnings.

Commodities, Bonds And Global Equity Markets:

Crude oil futures fell sharply after Thursday’s surge in the wake of the U.S. retail sales data, and gold futures rose modestly and are tantalizingly close to $2,500 an ounce. The 10-year Treasury yield eased 3.2 points to 3.894%. Bitcoin USD BTC/USD rose modestly and traded past the $58.5 level.

Asian stocks rallied across the board, encouraged by Wall Street’s scintillating rally. Japan’s Nikkei 225 soared 3.64% as the yen weakened against the dollar amid the strong U.S. data. European stocks also advanced in early trading on Friday.

Read Next:

• Anthony Scaramucci Says Kamala Harris’ Poll Numbers Are Driving Market Higher, Predicts ‘Rough 81 Days’ Ahead For Trump

Stocks Photo by Jirapong Manustrong on Shutterstock