Stock futures drift after S&P 500, Dow log record highs

Stock futures traded sideways Friday morning after another record-setting day on Wall Street, with a batch of stronger-than-expected economic data and corporate earnings results helping fuel a risk rally.

Contracts on the S&P 500 ticked above the flat line after the index reached a record high a day earlier. Dow futures edged higher after the Dow jumped to a record intraday and closing level of more than 34,000. Contracts on the Nasdaq edged slightly lower as technology stocks steadied. 

“The Dow’s push through 34,000 is a signal that investor appetite for future growth prospects is spilling over into more value-oriented names,” Peter Essele, head of portfolio management for Commonwealth Financial Network, said in an email. “The demand for industrials and more cyclically-oriented areas should continue as the vaccines take hold and earnings potentially come in higher than originally expected.” 

Treasury yields ticked up Friday morning after retreating on Thursday even amid a batch of estimates-topping economic data. Retail sales rose in March by the most since May 2020, fueled by a combination of stimulus spending and broadening business reopenings, and new weekly unemployment claims fell to a fresh pandemic-era low. First-quarter corporate earnings have largely topped already lofty estimates, with the big banks that reported this week posting rising sales and profits to coincide with the strengthening economic backdrop.

To many strategists, the stronger-than-anticipated quarterly reports this week are likely just the start of a slew of strong results in the coming weeks. 

“We are expecting this economic recovery. It’s only just starting to unfold,” Seema Shah, Principal Global Investors chief strategist, told Yahoo Finance. “We think that as our earnings numbers go through, showing that really positive picture, confirming that positive picture, then that’s going to give the market an additional ‘oomph.’ But certainly, the rotation that we’ve already seen over the last couple of weeks, couple of months, has still got further to go. And really equity markets are in a very good position given this very strong economic backdrop.” 

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8:30 a.m. ET: Housing starts surge by the most since June 2020 in March as warming weather fuels rebound 

Housing starts jumped 19.4% in March over February, the Commerce Department said Friday, with inclement weather easing during the month and helping catalyze a resurgence in building activity. This marked the biggest monthly jump since July 2020, and handily exceeded consensus economist expectations for a rise of 13.5%. 

The jump also sharply reversed February’s 11.3% monthly decline. Housing starts in March rose to a seasonally adjusted annualized rate of 1.739 million, or the highest level since 2006. The vast majority of these were for single-family housings starts, which rose 15.3% in March. By geography, single-family starts in the South saw the biggest monthly gain at 8%. 

Building permits, which signal future homebuilding, also rose more than expected, climbing 2.7% to a seasonally adjusted annual rate of 1.766 million. This followed a decline of 8.8% in February. 

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7:52 a.m. ET: Morgan Stanley posts record Q1 net income as stock and bond trading surges 

Morgan Stanley (MS) extended a streak of strong bank earnings results this week, posting record net income in the first quarter as rising rates and strong demand for equity and fixed-income trading fueled results.

Adjusted earnings of $2.22 per share were well above the $1.68 expected, according to Bloomberg consensus data. Net revenue of $15.7 billion was also a record, and easily topped estimates for $13.95 billion and last year’s first-quarter net revenue of $9.8 billion. Fixed income trading revenue jumped 44% to $2.97 billion, while equities trading revenue rose 17% to $2.88 billion. 

“The Firm delivered record results. The integrated Investment Bank continues to thrive. We closed the acquisition of Eaton Vance which takes Investment Management to over $1.4 trillion of assets,” CEO James Gorman said in a press statement. “Wealth Management brought in record flows of $105 billion. The firm is very well positioned for growth in the years ahead.” 

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7:15 a.m. ET Friday: Stock futures drift ahead of the opening bell

Here’s where markets were trading Friday morning:

• S&P 500 futures (ES=F): 4,164.75, up 2 point or 0.05%

• Dow futures (YM=F): 33,959.00, up 36 points or 0.11%

• Nasdaq futures (NQ=F): 14.004.25, down 9.75 points or 0.07%

• Crude (CL=F): -$0.02 (-0.03%) to $63.44 a barrel

• Gold (GC=F): +$10.70 (+0.61%) to $1,777.50 per ounce

• 10-year Treasury (^TNX): +3.7 bps to yield 1.567%

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6:07 p.m. ET Thursday: Stock futures mixed after index reach record highs 

Here’s where markets were trading Thursday evening: 

• S&P 500 futures (ES=F): 4,161.5, down 1 point or 0.02% 

• Dow futures (YM=F): 33,928.00, up 5 points or 0.01%

• Nasdaq futures (NQ=F): 13,997.5, down 16.5 points or 0.12%

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Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter: @emily_mcck

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