U.S. Stock Market Future Indications by MarketWatch - January 29, 2016: Dow Futures Leap After Surprise BOJ Move, Joining in Global Rally.
The BOJ said it would adopt a negative interest rate policy for the first time, aiming to pre-empt further economic setbacks. Investors also await a reading on U.S. fourth-quarter economic growth, and shares in Amazon.com Inc., Microsoft Corp., Visa Inc., MasterCard Inc. and Chevron Corp. are likely to see active trading on their earnings reports.
S&P 500 futures ESH6, +0.69% rose 19.05 points, or 1%, to 1,899.75, while Dow Jones Industrial Average futures YMH6, +0.66% climbed by 151 points, or 1%, to 16,123. Nasdaq 100 futures NQH6, +0.57% gained 37.25 points, or 0.9, to 4,191.
In Asia, Japan’s Nikkei NIK, +2.80% closed 2.8% higher, while China’s Shanghai Composite SHCOMP, +3.09% jumped 3.1%. The Stoxx Europe 600 SXXP, +0.60% traded up 1.1%.
The Tokyo index’s leap means it’s continuing to recover after hitting lows earlier this month, said Bill McNamara, technical analyst at Charles Stanley, in a note Friday. “Under the circumstances one might reasonably expect the positive sentiment generated by this move to flow into asset markets around the globe,” he added.
For the month, S&P 500 SPX, +0.55% is on track for a 7.4% drop as of Thursday’s close, the Dow industrials DJIA, +0.79% are down 7.8%, and the Nasdaq Composite COMP, +0.86% is 10% lower.
For the week, the S&P is on pace for a 0.7% fall as of Thursday’s finish, the Dow is down 0.2% and the Nasdaq is off 1.8%. Stocks closed higher Thursday, bouncing back from a drop on Wednesday, helped by rallies in oil prices and Facebook shares FB, +15.52% .
Amazon posts largest quarterly profit everAmazon delivered its largest quarterly profit ever, yet shares fell as much as fifteen percent after the markets closed Thursday because the profits did not meet investors' expectations.
Rival credit card network MasterCard MA, -1.63% is due to post earnings before the market’s open. Oil major Chevron Corp. CVX, +3.16% , appliances manufacturer Whirlpool Corp. WHR, -0.26% , drug company AbbVie Inc. ABBV, -2.21% and consumer products maker Colgate-Palmolive Co. CL, +1.12% are on Friday morning’s earnings docket, too.
Economic news: The reading on U.S. fourth-quarter economic growth is due at 8:30 a.m. Eastern Time, with economists polled by MarketWatch expecting gross domestic product expanded by 0.7%. Other forecasts see 0.9% GDP growth.
Reports on U.S. employment costs and advance trade in goods are also expected at 8:30 a.m. Eastern. In addition, investors are slated to get a reading on the Chicago area’s economy at 9:45 a.m., a consumer-sentiment report at 10 a.m. and U.S. oil rig count data at 1 p.m.
Check out: MarketWatch’s Economic Calendar
Other markets: A key U.S. dollar index DXY, +0.45% rose early Friday, helped by the yen’s USDJPY, +1.66% drop after the BOJ’s move. Oil futures CLH6, -0.12% advanced, while gold futures GCH6, -0.23% dropped.