Dow futures climbs nearly 200 points as optimism over economic recovery grows

Dow futures climbs nearly 200 points as optimism over economic recovery grows

Stock futures rose in the early morning as optimism over economic recovery grows following strong labor market data.

Futures for the Dow Jones Industrial Average gained 170 points. S&P 500 futures and Nasdaq-100 futures also traded in positive territory.

Salesforce.com Inc. shares rose roughly 4.2% in the extended session Thursday after the cloud-based customer-relationship management company topped Wall Street estimates and raised its outlook for the year. HP shares fell almost 6% even though the company reported a 27% year-over-year rise in revenue and beat on both the top and bottom line. 

The Dow Jones Industrial Average climbed 141.59 points in Wednesday regular trading, while the S&P 500 edged 0.1% higher. The Nasdaq Composite closed flat.

Shares of Boeing gained nearly 4% amid optimism about the recovery economy. First-time jobless claims fell to a new pandemic low of 406,000, according to Labor Department data.

AMC surged as much as 47% Thursday and ended the session 35.6% higher at $26.52, pushing its week-to-date advance to nearly 120%. Shares of the movie-theater chain closed 35.6% higher while another meme stock, GameStop, gained 4.8%.

The major indexes are on track to close higher this week. The S&P 500 is up 1.08% week to date. The blue-chip Dow is 0.75% higher over the same time period, while the Nasdaq has gained nearly 2%.

The moves higher this week come as investors monitor the back-and-forth in Washington over a comprehensive infrastructure package that could further boost the economic recovery. US Senate Republicans unveiled a new infrastructure offer on May 27 that would spend US$928 billion over eight years to revitalize America’s infrastructure, still well below President Joe Biden’s last proposal.

Damon Harrison
Market Analyst, IPG Group