Tuesday, June 28, 2022
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Stock Market Set to Snap Long Losing Streak

Stocks in Europe and Asia rose on Friday, following a rally in the United States the day before. The S&P 500 has risen in three of the past four trading sessions, putting it on track to end a streak of seven consecutive weekly declines dating to early April.

Investors have put more than $20 billion into global stocks this week, mostly in the United States, according to Bank of America. That was the largest net inflow in 10 weeks, the bank’s analysts said in a report, suggesting that a “summer rally bandwagon” is gaining momentum.

  • In Europe, the Stoxx 600 index gained 0.7 percent in early trading. Hong Kong’s Hang Seng was the standout performer in Asia, up nearly 3 percent, after the Chinese tech giants Alibaba and Baidu reported better-than-expected earnings.

  • U.S. stock market futures were up slightly, signaling a higher open on Friday. Through Thursday’s close, the S&P 500 was up 4 percent for the week. Last week, the benchmark index briefly dropped into bear market territory, defined as a 20 percent decline from a recent peak. It remains about 15 percent below the high it reached in early January.

  • Better-than-expected earnings reports from several airlines and retailers have buoyed the market this week, but the picture may be more mixed on Friday. After Thursday’s market close, financial reports from Costco and Gap disappointed investors, pushing their shares lower in premarket trading.

  • The effect of high inflation on corporate profit margins is a preoccupation of investors of late, and new government data on prices, income and spending due Friday will be watched to gauge inflationary pressures and the attitudes of consumers. “It is normally a bad idea to go short the hedonism of the U.S. consumer,” Paul Donovan, the chief economist at UBS Wealth Management, wrote in a research note.

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