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Dec 16, 2016

U.S. stock Market Future Indications by MarketWatch on December 16, 2016: Dow Set to Edge Closer to 20,000, Even as Other Markets Take a Breather

marketwatch.com

Sara Sjolin



U.S. stocks looked set for a mixed open on Friday, with the Dow average inching closer to the psychologically important 20,000 level and on track for its longest weekly winning streak in more than a year.

Futures for the Dow Jones Industrial Average YMZ6, +0.16%  rose 15 points, or 0.1%, to 19,818, indicating a second straight day of gains. The blue chip benchmark on Thursday traded less than 50 points from the 20,000 handle at one point as bank stocks continued to move higher.
Read: 5 things to know about the Dow’s attempt to rally to 20,000 and beyond
The Dow was up 0.5% for the week, on track for a sixth weekly win, as of Thursday’s close. That would mark the longest weekly run of gains since November last year.
For the other benchmarks on Friday, futures for the S&P 500 index ESZ6, +0.18% slipped 0.15 point to 2,258.25, while those for the Nasdaq-100 index NQZ6, +0.14%  dropped 1.50 points to 4,933.25.
Both the S&P SPX, +0.39%  and the Nasdaq Composite COMP, +0.37%  closed higher on Thursday, rebounding from Wednesday’s losses and on track for small gains for the week. The declines Wednesday came after the Federal Reserve lifted interest rates and signaled three hikes could come in 2017.
“Seems the mid-week dip on a more hawkish Federal Reserve was just a chance for a breather,” said Lee Wild, head of equity strategy at stockbroker Interactive Investor, in a note.
“The U.S. economy is fit enough to absorb a number of rate hikes next year and, like Brexit, Trump and Italy before it, Fed tightening is no reason to sell. Traders are not minded to bet against president-elect Donald Trump just yet either,” he said.
See: How the Fed is chasing Donald Trump’s tail
U.S. equities have surged since the presidential election in November. The gains have been attributed to expectations that Donald Trump’s policy proposals, such as increased infrastructure spending, tax cuts and deregulation, will spur economic growth.
Economic news: After two days packed with economic data, the calendar gets a bit quieter on Friday. Readings on housing starts and building permits, both for November, are the major releases due at 8:30 a.m. Eastern Time.
“The data might give us insight into whether the higher mortgage yields in the U.S. after the U.S. presidential election have had any impact on housing activity after the very strong NAHB housing market index for December,” analysts at Danske Bank said in a note.

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Dollar rally: After a Fed-fueled rally, the dollar struggled for direction in early Friday trade. The ICE Dollar Index DXY, -0.22%  , which measures the greenback against a basket of rival currencies, was flat at around 103.02.
The greenback slipped slightly against the euro EURUSD, +0.3745%  , with the shared currency buying $1.0447, up from $1.0415 late Thursday in New York.
Read: The dollar is closing in on parity with the euro — at long last
Other markets: Stocks closed mixed in Asia. Japan’s Nikkei 225 index NIK, +0.66%  ended 0.7% higher, after reaching its highest level since last December earlier in the session. In Europe, stocks lingered below their 2016 high.
Oil prices CLF7, +0.69%  turned lower, while metals prices traded mixed.
Movers and shakers: Shares of Netflix Inc. NFLX, +1.26%  could move on Friday after the company late Thursday struck an exclusive deal to stream all the films of Bollywood star Shah Rukh Khan.
Oracle Corp. ORCL, -0.05%  was also in the limelight after the software company slipped in late Thursday trade following second-quarter earnings.
U.S.-listed shares of TiGenix NV TIG, -24.52%  surged 28% in premarket trade Friday, a day after pricing its IPO.
The weekend could be a big one for Walt Disney Co. DIS, +0.33%  : Its “Rogue One: A Star Wars Story” hits the box office.