Stock futures rise after S&P 500 posts its biggest one-day rally since 2020

Wall Street set for more gains at the open

Stock futures rose Friday after China said it would ease some Covid measures, building on optimism from lighter-than-feared inflation data that fueled a broad market rally in the previous session.

Futures tied to the Dow Jones Industrial Average added 152 points, or 0.5%. S&P 500 futures were up 0.5% and Nasdaq 100 futures rose 0.7%.

Shares of U.S.-listed Chinese stocks jumped in the premarket after China said it would lift some Covid restrictions, shortening quarantine time for international travelers by two days. Shares of Alibaba, Pinduoduo and JD.com were up about 5%, 5.5% and 8%, respectively.

Other stocks with high exposure to China popped on the news. Shares of casino operators Wynn Resorts and Las Vegas Sands were up more than 4% and 3% in the premarket.

The news built on Thursday’s rally when the major averages posted their biggest one-day gains since 2020. The Dow jumped more than 1,200 points following a smaller-than-expected rise in consumer prices for the month of October, giving investors hope that inflation may be cooling. The S&P rose 5.5%, and the Nasdaq Composite surged about 7.4%.

“Markets across the board are euphoric following the cooler CPI this morning… But today’s CPI report, while indicating that inflation is moving in the right direction, does not suggest that inflation has been rooted out of the broader economy,” Quincy Krosby, chief global strategist for LPL Financial, said on Thursday. “And it does not suggest that Fed’s job to restore price stability is complete.”

All of the indexes are on pace for a winning week. The Dow is up 4% on a weekly basis, while the S&P and Nasdaq are on pace for increases of 4.9% and 6.1%, respectively. The three averages are also on track for a positive month.

Investors are looking forward to preliminary University of Michigan consumer sentiment data, due out at 10 a.m. ET.25 Min Ago

Casino operators jump in the premarket

Casino stocks that have a high exposure to China advanced on the news that the country was easing some Covid measures. Wynn Resorts and Las Vegas Sands were up more than 4% and 3% in the Friday premarket.

Stocks making the biggest moves premarket

Check out the companies making headlines before the bell:

  • Walgreens (WBA) – The pharmacy chain operator’s stock added 1.5% in the premarket after Deutsche Bank upgraded the stock to buy from hold. Following a recent meeting with management, the firm said it is increasingly confident in Walgreens’ strategy to transition to a healthcare services company.
  • Intel (INTC) – The chip maker’s stock was rated underweight in resumed coverage at JPMorgan Chase following a restriction period, compared with its most recent rating of overweight. JPMorgan said Intel will participate in an overall industry rebound, but at a slower pace due to competitive pressures. Intel fell 2% in premarket action.
  • US Bancorp (USB) – Warren Buffett’s Berkshire Hathaway has sold more than 91 million shares of US Bancorp since the start of the year, according to a regulatory filing. Berkshire now owns just over 53 million shares, a 3.6% stake.

Read the full list here.

— Peter Schacknow 1 Hour Ago

U.S.-listed Chinese stocks rise after China lifts some Covid restrictions

Shares of U.S.-listed Chinese stocks popped in Friday premarket trading after China announced that it would pull back on some Covid restrictions, and shortened quarantine time for international travelers by two days.

Shares of JD.com surged 8% in the premarket, while Alibaba was up 4.8%. Shares of Pinduoduo were 5.2% higher, while Baidu jumped 3.2%.

Intel falls after JPMorgan double downgrade

Intel shares dipped more than 2% in the premarket after JPMorgan double downgraded the chipmaker to underweight from overweight. Analysts at the bank cited increasing competition from rivals such as AMD and Taiwan Semiconductor for the rating change.

CNBC Pro subscribers can read more here.

— Alex Harring 5 Hours Ago

European markets climb on U.S. inflation reading, China’s easing of Covid measures

European stocks advanced on Friday as global markets remained buoyant after softer-than-expected U.S. consumer price index reading signaled that inflation may have peaked.

The pan-European Stoxx 600 was up 0.7% in early trade, with  financial services adding 2.4% to lead gains while the health care sector slipped 0.7%.

Sentiment was boosted further on Friday after China said it would ease some Covid measures, which sent Hong Kong’s Hang Seng index soaring more than 7% overnight.

- Elliot Smith 8 Hours Ago

Oil prices rise more than 2% on back of China easing quarantine measures

Oil prices climbed more than 2% after China, the world’s top oil importer, trimmed its quarantine period for international travelers by two days.

Brent crude futures rose 2.51%, to stand at $96.07 per barrel, while U.S. West Texas Intermediate dropped 2.72% to $88.82 per barrel.

— Lee Ying Shan 8 Hours Ago

China trims Covid quarantine time by two days

Chinese state media announced on Friday that the country will reduce quarantine time for international travelers by two days.

The revised rules state travelers will be required to stay at a quarantine facility for five days, shorter than the previous period of seven days, with a three day period of home observation.

— Evelyn Cheng, Lee Ying Shan

Correction: This post was updated to accurately reflect the duration of home observation to three days. 14 Hours Ago

CNBC Pro: Bitcoin will fall further, says fund manager — until this one catalyst kicks in

Bitcoin is down by 75% from its all-time high, and a cryptocurrency exchange is on the brink of bankruptcy. In such an environment, a bond fund manager reveals the one thing that’s needed for prices to rally.

Michael Howell from Cross Border Capital also said that due to the missing catalyst, there’s an increased risk of investors getting in a “bit too early.”

CNBC Pro subscribers can read more here.

— Ganesh Rao 14 Hours Ago

Toast shares rise after hours

Shares of the restaurant point of sale system Toast popped about 8% in extended trading on Thursday evening after the company reported better-than-expected revenue for the third quarter.

Toast posted $752 million in quarterly revenue, while analysts were looking for $720 million, according to FactSet. It also raised current quarter and full-year revenue guidance.

— Tanaya Macheel 14 Hours Ago

Tech sector could see ‘recessionary conditions,’ says SoFi’s Young

While it’s possible the economy averts a recession, the market could see recessionary conditions in certain sectors even if they don’t bleed into the overall economy – one of those sectors is tech, says SoFi chief investment strategist Liz Young.

“As the typical sequence goes, markets fall first, then earnings contract, and the economy breaks last in a recessionary environment,” Young said in a note. “Three of the big tech names — Apple, Amazon, and Microsoft — have announced hiring freezes at least through the end of the year. Many other companies have announced layoffs and I expect these headlines to keep coming for a while.”

She added that with the tech sector down 30% this year, this is an attractive entry point for long-term investors, but that she still expect one more market flush before the end of the bear market.

“Remember, markets bottom before the economy,” she said. “Even if we do have a 2023 recession, by the time we’re in it or know about it, the market has likely already started to recover.”

— Tanaya Macheel 15 Hours Ago

Stock futures open higher

Stock futures opened slightly higher on Thursday night after better-than-feared inflation data fueled a broad market rally.

Futures tied to the Dow Jones Industrial Average added 77 points, or 0.23%. S&P 500 futures and Nasdaq 100 futures gained 0.28% and 0.33%, respectively.