(Bloomberg) — US stock futures pointed to gains at the Wall Street open as investors looked past a jump in borrowing costs that cooled market sentiment earlier in the week.
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Contracts on the S&P 500 rose 0.2%, suggesting the underlying gauge could trim its first weekly drop in seven. Treasury yields declined for a second day, leaving the rate on the 10-year note up about one tenth of a percentage point in the week.
Traders’ attention is turning to US economic data next week, including a monthly payrolls report, for fresh clues on the scope for Federal Reserve interest-rate cuts. Some analysts are predicting a stock market boost should Donald Trump win the Nov. 5 presidential vote in the US, while others warn it may reignite inflation and slow the pace of Fed easing.
“The markets at least are sniffing out a Republican sweep, and perhaps an electoral/Senate landslide,” Stephen Auth, chief investment officer for equities at Federated Hermes, wrote in a note. “Should this occur, and we think it very well might, we’d expect the modest rally we’ve experienced since July to pick up steam. A Trump win would likely favor the old economy financial, industrial, energy and small cap stocks.”
Europe’s Stoxx 600 index was little changed after lackluster results from companies including French Cognac maker Remy Cointreau SA and Mercedes-Benz Group AG. The regional stocks measure is headed for a 1.2% drop in the week.
Corporate Highlights:
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Remy Cointreau slashed its annual sales guidance on weak demand in the US and China where consumers continue to cut spending.
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Eni lowered profit guidance for the year, reflecting a worsening oil-price outlook, even as third-quarter earnings beat analyst estimates.
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South Korean prosecutors have indicted BNP Paribas SA for allegedly violating short-selling rules, according to people with direct knowledge of the matter.
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Electrolux reported operating profit for the third quarter that missed the average analyst estimate.
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NatWest Group Plc raised its outlook for the year after earnings beat estimates in the third quarter.
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Mercedes-Benz plans to step up cost improvement measures after fierce competition and weaker demand in China hit the luxury-car maker’s profits.
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Thames Water Utilities Ltd. unveiled a proposal on Friday that seeks to raise up to £3 billion ($3.9 billion) from its creditors to buy it more time to avoid going into special administration early next year.