Stock index futures pointed to a higher opening Friday with buying interest picking up after the first back-to-back drop in the broader market since the start of the month.
S&P futures (SPX) +0.7%, Nasdaq 100 futures (NDX:IND) +0.7% and Dow futures (INDU) +0.3% were higher.
Those long the market could make a stand for a second-straight winning week today, but volume could be lighter with many getting a head start on Thanksgiving travel.
The S&P (SP500) is -1.2% so far this week, with the Nasdaq Composite (COMP.IND) -1.6% and the Dow (DJI) -0.6%.
Rates are a little higher after Fed chatter on Thursday indicated that members are looking for a higher terminal rate than the market is pricing in.
The 10-year Treasury yield (US10Y) is up 4 basis points to 3.81% and the 2-year yield (US2Y) is up 4 basis points to 4.50%.
“Bear in mind that just after the CPI report when the latest round of speculation about a Fed pivot was at its height, the intraday low for terminal rate pricing fell back to 4.83%,” Deutsche Bank’s Jim Reid said. “And since then, terminal rate pricing has come back by about halfway to its intraday peak of 5.2% earlier in the month. We settled at 4.99% last night.”
On the data front, October existing home sales arrive shortly after the start of trading. Economists expect a drop to an annual rate of 4.38M.
“This is not directly growth related (the homes are already constructed), but affects things like demand for furniture,” UBS’ Paul Donovan said. “Falling house prices might create a negative wealth effect – that would matter to leverage.”
Among active stocks, Farfetch is slumping after cutting forecasts.
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