- Consumer confidence falls
- TSMC gains on strong April sales
- Sweetgreen soars on raised outlook
4:10pm: Dow's winning streak continues
US stocks managed to close mostly higher on Friday despite some initial losses earlier in the session due to a decline in consumer sentiment.
The Dow Jones Industrial Average recorded its eighth consecutive session of gains and its best week of the year, finishing at 39,513 points or 0.3% higher. The S&P 500 also ended the day in positive territory, closing above 5,223 or 0.2% above, while the Nasdaq finished just below the flatline at 16,341.
The drop in consumer sentiment, as indicated by the latest University of Michigan survey, revealed a 13% decline in May, reaching its lowest level in six months, raising concerns about the future of interest rate cuts amid signs of a cooling labor market. Federal Reserve Governor Michelle Bowman expressed her belief that interest rates should remain unchanged "for a bit longer," echoing sentiments of other Fed officials.
On the corporate front, TSMC shares surged after reporting a 60% increase in April sales, attributing it to sustained AI demand and a rebound in consumer electronics like smartphones. Additionally, shares of pharmaceutical company Novavax finished almost 100% higher following a $1.4 billion deal with French company Sanofi to co-commercialize its current COVID-19 vaccine worldwide.
12:05pm: Stocks mixed
There was a pullback in the three main US stock indexes at noon as new data showed consumer sentiment has hit a six-month low.
The latest University of Michigan consumer sentiment survey showed a 13% drop in overall sentiment during May to 67.4, below expectations of 76.2.
The Nasdaq was down 0.2% at 16,313 points, the S&P 500 was flat at 5,213 points and the Dow Jones added 0.1% at 39,433 points.
Major movers included Taiwan Semiconductor Manufacturing Co (ADR) (NYSE:TSM), which posted a 60% year-over-year jump in April sales driven by strong demand for AI chips sending its stock almost 5% higher.
Fast casual restaurant chain Sweetgreen shares added 37.5% at about $32 after reporting strong Q1 sales and raising its outlook.
9.35am: US stocks open higher
Wall Street has opened higher on Friday as US stocks finish up first quarter results season and investors turn their focus to interest rate hikes.
All three indexes rose around 0.2% at the sound of the opening bell, with the Dow Jones at 39,479, the S&P 500 at 5,227 and the Nasdaq at 16,385.
Yesterday, weekly jobless claims rose to their highest level in nearly a year, pushing bond yields higher, indicating that the US may cut rates in 2024.
While company results appears to be settling down in the States, it hasn't stopped some stocks from soaring.
Novavax, the biotech firm, soared 134.9% at the open after it revealed it agreed a deal to sell its Covid vaccine with Sanofi, the French pharmaceutical giant.
The two companies will co-commercialise Novavax's product across the globe, barring India, Japan and South Korea due to the US company already having partnership deals there.
8.30am: Wall Street to open higher
US stocks are poised to open higher on Friday, with the Dow Jones on track to record its long winning streak this year.
Dow Jones futures implied the index would open around 122 points higher at 39,629.
Should the index finish the session higher it would mark the seventh consecutive session of positive gains. The longest streak before this was a nine-day run in December.
Both the S&P 500 and Nasdaq are also expected to open higher, with the former implied to rise 16 points to 5,255, having closed above the 5,200 mark for the first time since early April.
Chris Hyzy, chief investment officer of Merrill and Bank of America Private Bank said: “What’s important in all of this context is, ‘are we in the early stages of a long-term bull market or not?
'It feels comfortable saying it on a day like this, but we are, in our opinion."