U.S. stocks open higher after 3 days of losses; Nike surges

The market started the day higher as investors were encouraged by a report that showed the US economy grew faster in the spring than previously estimated.


The broader Standard & Poor’s 500 rose 17.88, or 0.8%, while the tech-heavy Nasdaq was up more than 1%, or 49.93 points.

The Dow Jones industrial average climbed 184 points, or 1.2 percent, to 16,387 as of 11:45 a.m. Eastern time Friday.

Yellen on Thursday said the central bank is on track to raise interest rates this year.

“With equities having sold off following the Fed’s decision to leave rates on hold last week, the bullish (market)… reaction suggests investors would prefer the Fed to get on with it and raise rates sooner rather than later”, said Mike van Dulken, analyst at Accendo Markets trading group. Record low interest rates since the 2008 global financial crisis have been a boon for stocks, underpinning a bull market that has run for six and a half years. “U.S. GDP was also slightly better, and that would tend to weigh on gold as well, because it gives some backward ammunition to a rate rise”. “By itself, the precise timing of the first increase in our target for the federal funds rate should have only minor implications for financial conditions and the general economy“, she said. The combination of higher rates and a growing economy is good for those companies. That’s because they can earn more from making loans.

EUROPE’S DAY: France’s CAC 40 jumped 3.1 percent, while Germany’s DAX climbed 2.8 percent. Britain’s FTSE 100 gained 2.5 percent. The metal dropped this week on concern Volkswagen AG’s emissions scandal may cut demand for the metal that’s mainly used to cut pollution from diesel vehicles. The company is expected to announce the appointment of a new CEO on Friday.

Recent global economic and financial market developments do not significantly affect the US central bank’s policy, she said.

Much of the recent price weakness, Yellen said, is due to special factors such as a strong dollar and low oil prices, which are likely to fade, allowing USA inflation to rise to a 2 percent goal over the next few years.

The euro trended lower against the dollar at 1.1196 on Friday, as compared to its previous close of 1.1233 in North American trade late Thursday.


Gold futures on the COMEX division of the New York Mercantile Exchange closed lower Friday, with the most active gold contract for December delivery losing 8.20 dollars, or 0.71 percent, to settle at 1,145.60 dollars per ounce.

Asian shares slump dollar gains as Yellen revives rate talk