Live stock market news updates: Stocks rise but still heading for longest streak of weekly losses since 2001

U.S. stocks rose on Friday, though major indexes are still heading for steep weekly losses as concerns over the resilience of corporate earnings to inflation resurfaced this week.

The S&P 500 rose around 0.8% just after the opening bell, after stocks in Asia and Europe rose after China’s central bank unexpectedly cut a benchmark interest rate for offer some relief to borrowers in the country still struggling with a widespread outbreak of COVID-19.

The Dow gained more than 150 points, or 0.5%, and the Nasdaq gained more than 1%. Treasuries stabilized, with the yield on the benchmark 10-year note hovering below 2.9%, and US crude oil prices edged higher to over $112 a barrel.

Friday’s gains for major U.S. equity indices, however, did not fully offset the fall in equities seen earlier this week. As of Thursday’s close, the S&P 500 was on track for a weekly loss of 5.4%, its largest since January. The index is also down 18.7% from its recent all-time high close on Jan. 3, putting it within striking distance of a bear market, or at least a 20% drop from a recent one. historic peak. And the S&P 500 was also on track to post a seventh straight weekly loss, or its longest losing streak since 2001. The Dow Jones and Nasdaq advanced to weekly losses of 5% and 6.2%, respectively. .

The latest bout of volatility came on the back of weaker-than-expected results and earnings forecasts from some of the major U.S. retailers, appearing to confirm fears that companies will find it harder to pass on rising costs to consumers. . Ross Stores (ROST) became the latest major retailer to cut its full-year forecast on Thursday evening, joining Walmart (WMT) and Target (TGT) in highlighting the impact of inflation and chain disruptions. supply on profitability. Shares of Ross fell 25% just after the market opened for the stock’s biggest decline since 1986, and Target and Walmart each headed for weekly losses of around 30% and 20%, respectively.

“Unfortunately, there is no safe haven. When we see the news coming out of consumer discretionary and basics…it shows the difficulties faced by businesses regardless of size,” said Eva Teens, chief operating officer of ER Shares, at Yahoo Finance Live. “And ironically, it is sectors, commodities and consumer discretionary, that are seen as safe havens in a depressed economic market.”

The visible and growing consequences of rising prices also allowed the Federal Reserve to prioritize raising rates and tightening monetary policy to bring inflation down to its highest level since the early 1980s. , even at the expense of some growth in the broader economy. At the same time, however, other strategists have suggested that some of the factors that led to big business losing profits this week – such as stockpiling more inventory than they could sell – may ultimately have an impact. deflationary impact across the board, even in the absence of a more aggressive policy response.

“We’ve seen retailers desperately trying to catch up with consumer demand by ordering lots of products. It took a long time to get through supply chains, but it finally hit store shelves. And now they find that they have a little too much,” Christian Ledoux, chief investment officer of CAPTRUST, told Yahoo Finance Live.

“So we could see a deflationary effect on some of the CPI indices [Consumer Price Index] things to come in the coming months,” he added. “And if that does indeed materialize, the Fed might feel much more comfortable slowing down or even stopping at a lower interest rate point in the future.

9:47 a.m. ET: Foot Locker shares jump after company forecasts full-year results at high end, bucking retail sluggishness

Foot Locker (FL) shares more than 6% on Friday morning after the retailer said it expected its full-year earnings and sales results to be at the high end of its previously released ranges. The forecast turned unexpectedly optimistic amid the slew of disappointing retail results offered earlier this week.

For the full year, Foot Locker said it saw adjusted earnings per share at the “upper end” of its previous range of $4.25 to $4.60. Although he still sees a drop in sales this year, he expects that to be at the high end of his previous range of 4% to 6%.

“We are off to a strong start to 2022, reporting a strong quarter against tough comparisons between fiscal stimulus and last year’s historically weak promotions,” Foot Locker CEO Richard Johnson said in a statement. A press release. “Our progress in expanding and enriching our assortment continues, as we continue to meet our customers’ demand for choice. These efforts helped drive strong first quarter results, and we believe will allow us to participate more fully in the robust growth of our category going forward.”

Same-store same-store sales in the first quarter fell 1.9%, but that came after same-store sales climbed more than 80% in the same quarter last year. The drop was also shallower than the 3.5% decline Wall Street expected, according to Bloomberg data. Adjusted earnings per share of $1.60 for the first quarter beat estimates by 7 cents.

9:33 a.m. ET: Stocks open higher, Nasdaq gains more than 1%

Here are the top moves in the markets as of 9:33 a.m. ET:

  • S&P 500 (^GSPC): +35.28 (+0.90%) to 3,936.07

  • Dow (^ DJI): +205.35 (+0.66%) to 31,458.48

  • Nasdaq (^IXIC): +119.72 (+1.05%) at 11,508.21

  • Raw (CL=F): +$0.02 (+0.02%) at $112.23 per barrel

  • Gold (CG=F): -$1.00 (-0.05%) at $1,840.20 per ounce

  • 10-year cash flow (^TNX): -0.9 bps for a yield of 2.846%

7:15 a.m. ET: Stock futures head for a higher open

Here is where the markets were trading Friday morning:

  • S&P 500 Futures Contracts (ES=F): +40.75 points (+1.05%) to 3,938.50

  • Dow futures (JM=F): +267.00 points (+0.86%) to 31,469.00

  • Nasdaq futures contracts (NQ=F): +163.50 points (+1.38%) to 12,041.75

  • Raw (CL=F): +$0.24 (+0.21%) at $112.45 per barrel

  • Gold (CG=F): +$2.20 (+0.12%) at $1,843.40 per ounce

  • 10-year cash flow (^TNX): +0.2 bps for a yield of 2.857%

NEW YORK, NEW YORK – MAY 06: Traders work on the floor of the New York Stock Exchange (NYSE) during morning trading on May 06, 2022 in New York City. After a day that saw a drop of more than 1,000 points on inflation fears, the Dow Jones Industrial Average was down more than 200 points in morning trading. (Photo by Spencer Platt/Getty Images)

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

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