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Major averages look hesitant again Friday, but Wall Street is almost certainly assured a solid weekly performance.
Early on and the S&P 500 (SP500) is +0.1%, Dow (DJI) is +0.4%, and the Nasdaq Composite is (COMP.IND) -0.3%.
Moreover, the S&P is up 3.5% for the week, with the Nasdaq Composite up 5.3% and the Dow is up 2.4%.
The FOMC decision arrives next week and with some soft economic data traders have become more convinced that the hike will be 75 basis points. The market is pricing in nearly an 80% chance of 75 (20% of 100 basis points), up from around 60% to kick off the week.
“In the current environment, bad news has been good news for equities, as the market anticipates that the Fed will have to ease off the gas sooner rather than later,” Deutsche Bank’s Jim Reid said.
Since “growth fears first sent jitters through markets in mid-June, driving a re-pricing lower of Fed terminal rates, the NASDAQ has rallied +13.28% from its YTD lows while FANG+ has increased +15.69% from just above its YTD lows,” he added.
The 10-year Treasury yield is down 12 basis points to 2.79%, while the 2-year is down 9 basis points to 3.00%.
Among active issues, online ad stocks are under pressure after a disappointing report from Snap. Twitter missed on the top and bottom lines, but is only down slightly as mDAUs arrived in line.
And GameStop starts trading at its post-split price today.
Image and article originally from seekingalpha.com. Read the original article here.