* Consumer spending rose 0.1 percent last month
* Nike up after it said it would launch pilot program with
Amazon Dow up 0.45 pct, S&P up 0.42 pct, Nasdaq up 0.28 pct
By Ankur Banerjee and Anya George Tharakan
June 30 (Reuters) – U.S. stocks were slightly up in early
trading on Friday after tech stocks appeared to recover from a
steep selloff and consumer spending data for May showed steady
U.S. consumer spending rose modestly in May and inflation
cooled, pointing to a slow-but-steady economic expansion that
could still lead the Federal Reserve to raise interest rates by
the end of the year.
The S&P 500 and the Dow recorded their worst daily
percentage drop in about six weeks on Thursday as a recent
decline in technology shares deepened and outweighed strength in
“It would not surprise me to have a lot of volatility,
considering the financials were particularly strong yesterday
and technology was particularly weak,” said Andre Bakhos,
managing director at Janlyn Capital LLC.
“We have what appears to be some sector rotation going on,
and its occurring at the end of the quarter and its adding to
Towards the end of the second quarter, the market witnessed
a few volatile days. On Wednesday, the tech-heavy Nasdaq posted
its best day since Nov. 7.
Tech stocks, which have led the S&P 500’s 8-percent gain
this year, pulled back recently as some investors questioned the
sector’s high valuations.
At 9:32 a.m. ET the Dow Jones industrial average was
up 96.23 points, or 0.45 percent, at 21,383.26, the S&P 500
was up 10.15 points, or 0.42 percent, at 2,429.85 and the
Nasdaq Composite was up 17.31 points, or 0.28 percent,
The remainder of 2017 looks likely to bring more of the
same, said Brad McMillan, Chief Investment Officer for
Commonwealth Financial Network.
“More growth, more market appreciation and more
normalization across the board. After the turmoil in recent
months and years, this is not a bad place to be.”
Oil prices climbed for the seventh straight session on
Friday in their longest bull run since April, but were still set
for the worst first-half performance since 1998.
The euro came off yearly highs on Friday but was still set
for its strongest quarter in six years as investors piled into
the currency on a brightening euro zone economy and its
implications for monetary policy in the bloc.
The final reading of University Of Michigan Surveys Of
Consumers Sentiment for June is due at 10:00 a.m. ET (1400 GMT)
On the stocks, Nike shares were up 8 percent after
the world’s largest footwear maker said on Thursday it would
launch a pilot program with Amazon.com Inc to sell a
limited product assortment on its website.
Shares of Cara Therapeutics Inc plunged 29 percent
after the biotech reported disappointing pain treatment data
from a key study.
Micron shares were up 2 percent after the chipmaker
forecast better-than-expected profit and revenue for fourth
Advancing issues outnumbered decliners on the NYSE by 1,995
to 471. On the Nasdaq, 1,343 issues rose and 743 fell.
The S&P 500 index showed 27 new 52-week highs and 11 new
lows, while the Nasdaq recorded 81 new highs and 69 new lows.
(Reporting by Ankur Banerjee in Bengaluru; Editing by Arun