US open: Dow Jones on track to erase 2020 losses

(Sharecast News) - Wall Street stocks opened higher on Friday, with the Dow Jones set to erase all of its 2020 losses at the open as a record-breaking rally for the index looks set to continue.
As of 1525 BST, the Dow Jones Industrial Average was up 0.15% at 28,534.91, while the S&P 500 was also 0.15% firmer at 3,489.85 and the Nasdaq Composite started out the session 0.52% stronger at 11,685.24.

The Dow opened 42.64 points higher on Thursday, building on gains from the previous session that came as market participants digested comments made by Federal Reserve chairman Jerome Powell regarding the central bank's plans for the future of monetary policy in the US and several data releases.

Oanda's Craig Erlam said: "The promise of lower rates for longer was music to the ears of Wall Street bulls, with the banks loving the steepening of the yield curve that accompanied the statement.

"The fact remains that we are nowhere near the point of a tightening cycle so it will be a long time until we actually see this new policy in action. For now, little has changed. The taps will be on for the foreseeable future as the economy recovers from the wreckage of the pandemic, hopefully, aided by a vaccine later this year."

As far as Friday was concerned, a slew of data releases were in focus, starting with personal expenditure data.

US consumer spending increased more than expected in July, according to the Department of Commerce, adding weight to expectations for a sharp rebound in economic growth in the third quarter.

Consumer spending, which accounts for more than two-thirds of US economic activity, rose 1.9% last month, ahead of expectations for a reading of 1.5% but well and truly shy of the 6.2% seen in June. Personal income was also better-than-expected, rising 0.4% while economists had forecast a drop of 0.2%.

Elsewhere, August's Chicago purchasing managers index dipped to 51.2 from 51.9 a month earlier, according to the Institute of Supply Managers, with order backlogs being the only category to show a monthly decline.

Lastly, the University of Michigan's final consumer sentiment reading for August showed a modest improvement throughout the month to 74.1 - up from 72.5 in July and ahead of expectations for a print of 72.8.

In corporate news, Coca-Cola revealed it would restructure its workforce and set voluntary job cuts, while Dell Technologies topped estimates with its most recent results amid a tight control on costs and an increased level of demand for personal computers amid the Covid-19 pandemic.