S&P 500; US Indexes Fundamental Daily Forecast – NASDAQ Called Sharply Higher on Back of Strong Amazon Earnings

Stock investors may be looking at a mixed opening based on the pre-market futures trade. The NASDAQ Composite is expected to open sharply higher on the back of Amazon’s stronger-than-expected earnings released on Thursday after the close. The benchmark S&P 500 Index and blue chip Dow are trading lower.

At 1121 GMT, June E-mini S&P 500 Index futures are trading 2669.25, down 5.25 or -0.20%. June E-mini Dow Jones Industrial Average futures are at 24212, down 104 or -0.43% and June E-mini NASDAQ-100 Index futures are at 6747.50, up 12.50 or +0.17%.

Traders will be looking to continue yesterday’s rally which saw the Dow surge more than 200 points on the back of better-than-expected earnings. The fact that the yield on the 10-year U.S. Treasury note dipped below 3 percent also helped underpin the markets.

Forecast

Earnings season will continue today with reports coming from Chevron and Exxon Mobil.

Economic data will also be at the forefront. Advance estimates of U.S. GDP figures will be released at 1230 GMT, along with the employment cost index. Consumer sentiment figures will come out at 1400 GMT.

The impact of the GDP report is hard to call right now. Traders are looking for a 2.0% increase. A stronger number will indicate the economy is growing. This could be bullish for stocks. However, it could also drive the 10-year note yield through the psychological 3-percent level. This could limit gains or even lead to fresh selling pressure like we saw earlier in the week.

A rise in the employment cost index will signal that inflation is moving higher. This may force the Fed to act more aggressively this year. That too could have a negative impact on stock prices. However, any weakness would likely be offset by a higher than expected consumer sentiment figure.

The major indexes could also receive a boost from the news of the successful summit between North Korea and South Korea which dampened the possibility of war in the Korean Peninsula.

Investors believe that the success of the meeting could ease tensions between the two nations. Earlier in the session, it was reported that the two leaders on Friday had pledged to remove the risk of war and collaborate in order to secure complete denuclearization of the Korean Peninsula.