© Reuters.
By Peter Nurse
Investing.com — U.S. stocks are seen opening with small gains Friday, continuing the previous session’s recovery ahead of the release of key inflation and consumer sentiment data.
At 07:00 ET (12:00 GMT), the contract was up 70 points, or 0.2%, traded 15 points, or 0.4% higher, and climbed 55 points, or 0.5%.
The major indices closed higher Thursday, breaking a five-day losing run, as the blue-chip gained 183.6 points, or 0.6%, the broad-based rose 0.8%, and the tech-heavy ended up 1.1%.
However, these three main averages are set to end the week lower, with the Dow on course to lose 1.8%, the S&P 500 2.6%, and the Nasdaq more than 3%.
This weakness stems from worries that the ’s aggressive tightening cycle to tame inflation could push the U.S. economy into recession next year.
Treasury Secretary tried to calm nerves on Thursday, saying the U.S. can avoid a recession, given that there is no wage-price spiral and supply chain bottlenecks are starting to ease.
“I believe we’re on the right track in terms of lowering inflation and that recession is not inevitable,” she said.
Still, recent strong job numbers and rising wages suggest inflationary pressures are lingering, and attention thus turns to next week’s but firstly producer prices later in the session.
The release is due out 08:30 ET (13:30 GMT), and is expected to inch up 0.2% in November from the prior month, while the , which excludes the volatile food and energy components, is also expected to rise 0.2% from the prior month.
The University of Michigan’s reading for December is due out Friday, at 10:00 ET (15:00 GMT), and is expected to remain largely unchanged at 56.9.
In the corporate sector, DocuSign (NASDAQ:) stock soared 12% higher premarket after the tech company beat expectations for earnings and revenue in the .
Lululemon (NASDAQ:) stock slumped 7% premarket after the athletic clothes company offered disappointing revenue and profit forecasts, with shoppers seen turning cautious about spending on higher-priced clothing.
Crude oil prices edged higher Friday, bouncing off one-year lows, but are still set to close the week with heavy losses on worries that the global economy is heading for a recession in 2023.
News that the Keystone pipeline between U.S. and Canada was closed after a spill in Kansas helped sentiment, but the disruption in supply isn’t expected to last long.
The rig count and positioning data round out the week, as usual.
By 07:00 ET, futures traded 0.5% higher at $71.84 a barrel, while the contract traded 0.2% higher at $76.28.
The two contracts were set to lose about 10% this week, having previously fallen to their weakest levels since December 2021.
Additionally, rose 0.6% to $1,811.65/oz, while traded 0.1% higher at 1.0560.
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