By Investors Hub
The major U.S. index futures are pointing to a higher opening on Monday, with stocks poised to extend the rebound seen last Friday.
Stocks saw some strength during trading on Friday, regaining ground following the sell-off seen in the previous session. With the upward move, the Nasdaq and the S&P 500 rebounded after ending Thursday’s trading at their lowest closing levels in a month.
The major averages all closed in positive territory, although the tech-heavy Nasdaq outperformed its counterparts. While the Nasdaq climbed 39.68 points or 0.6 percent to 6,256.56, the Dow inched up 14.31 points or 0.1 percent to 21,858.32 and the S&P 500 edged up 3.11 points or 0.1 percent to 2,441.32.
Despite the gains on the day, the major averages moved lower for the week. The Dow slumped by 1.1 percent, while the Nasdaq and the S&P 500 tumbled by 1.5 percent and 1.4 percent, respectively.
The strength on Wall Street was partly due to bargain hunting, with traders picking up stocks at reduced levels following the pullback seen over the past few sessions.
Positive sentiment was also generated by a report from the Labor Department showing just a modest uptick in consumer prices in the month of July.
The Labor Department said its consumer price index inched up by 0.1 percent in July after coming in unchanged in June. Economists had expected prices to rise by 0.2 percent.
Excluding food and energy prices, core consumer prices still crept up by 0.1 percent in July, matching the increases seen in the three previous months. Core prices had also been expected to climb by 0.2 percent.
The smaller than expected increase in consumer prices has led to optimism that the Federal Reserve will not be in a hurry to raise interest rates.
Buying interest was somewhat subdued, however, as the ever-escalating war of words between President Donald Trump and North Korea continued to raise geopolitical concerns.
Trump suggested in remarks on Thursday that his comments threatening North Korea with “fire and fury” may not have been tough enough.
“I will tell you this, North Korea better get their act together or they’re going to be in trouble like few nations ever have been in trouble in this world,” Trump said.
Trump continued to ramp up the rhetoric with a post on Twitter this morning indicating that the U.S. is prepared to take military action against North Korea.
“Military solutions are now fully in place, locked and loaded, should North Korea act unwisely. Hopefully Kim Jong Un will find another path!” Trump tweeted.
In an apparent response to Trump’s tweet, a statement issued by North Korea’s official KCNA news agency claimed the president is “driving the situation on the Korean peninsula to the brink of a nuclear war.”
Computer hardware stocks rebounded following recent weakness, with the NYSE Arca Computer Hardware Index climbing by 1.4 percent. The index bounced off its lowest closing level in six months.
Data storage company Seagate Technology (STX) posted a standout gain within the hardware sector, jumping by 2.4 percent.
Significant strength was also visible among software stocks, as reflected by the 1.2 percent gain posted by the Dow Jones Software Index. Autodesk (ADSK) and Red Hat (RHT) posted notable gains.
Biotechnology, tobacco, and transportation stocks also saw considerable strength, while steel stocks extended a recent move to the downside.
The blockchain brings new financing options to the business market. For example, Bitcoin Cash casino has adapted to only using cryptocurrency. This way, it makes it easier for their customers to deposit and withdraw in a BCH casino. Entrepreneurs have taken note of this and are looking to invest more in crypto than in fiat markets.
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