US open: Stocks edge higher on Fed rate cut hopes

(Sharecast News) - US stocks opened with moderate gains on Friday morning after a Federal Reserve policymaker showed his support for an interest-rate cut at the next policy meeting. Futures were showing losses in pre-market trading, as traders returned to their desks following the Juneteenth national holiday on Thursday, playing catchup with European markets which fell the previous session on mounting conflict between Israel and Iran.

However, comments from Fed governor Christopher Waller spurred a rally as Wall Street opened, after he said the Fed should "look through" one-off inflationary pressures from trade tariffs and focus on the fact that underlying inflation has slowed.

"We should be basing policy based on the data," Waller said in a CNBC interview. "I think we've got room to bring it down, and then we can kind of see what happens with inflation."

The Dow, S&P 500 and Nasdaq were all trading 0.3% higher by 0950 ET, with the Dow in particular rebounding from a three-week low on Wednesday.

With Friday's economic data calendar looking sparse, the markets' focus was firmly on the Middle East, after DonaldTrump announced that he would make a decision on US involvement within two weeks.

The White House said the deadline was "based on the fact that there's a substantial chance of negotiations that may or may not take". Press secretary Karoline Leavitt said: "If there's a chance for diplomacy, the president is always going to grab it, but he's not afraid to use strength."

"It does sound as if [Trump's] preference is for Iran to come back to the negotiating table to discuss its nuclear ambitions," said David Morrison, senior market analyst at Trade Nation.

"If this happens, it seems likely that Tehran may have to curb those ambitions quite dramatically, possibly to a point that it considers unacceptable. If so, then hostilities will resume, quite likely with US involvement."

WTI crude was swinging between gains and losses for most of the morning, down 0.3% at $74.95 a barrel by 0950 ET, while Brent crude tanked 3.1% to $76.38.

Market movers

Shares in American building products distributor GMS surged 27% on Friday, extending recent gains on reports that Home Depot will enter the bidding war for the company. According to the Wall Street Journal, Home Depot has made an offer for GMS, just two days after its larger peer QXO proposed taking the company over for $5bn. However, the retail chain has yet to release a statement.

Accenture came under pressure, despite robust third-quarter earnings, after bookings at the professional services firm disappointed. The company even raised its revenue guidance for the full year, though investors focused on a 6% year-on-year fall in new bookings.

Grocery giant Kroger jumped after raising its full-year sales outlook as first-quarter numbers beat expectations. Chief executive Ron Sargent said Kroger's "solid" first-quarter numbers had benefited from strong sales in pharmacy, ecommerce and fresh.

Amazon was higher despite the news that the UK's Groceries Code Adjudicator has opened a formal investigation over concerns that the retail giant may have breached rules requiring timely payments to suppliers.

Electric car giant Tesla edged higher ahead of this weekend's highly anticipated launch of its robotaxi service.

Dow Jones - Risers

Apple Inc. (AAPL) $200.39 1.94% Intel Corp. (INTC) $21.81 1.49% Caterpillar Inc. (CAT) $363.50 1.03% Travelers Company Inc. (TRV) $267.15 0.85% Cisco Systems Inc. (CSCO) $66.39 0.84% JP Morgan Chase & Co. (JPM) $276.22 0.82% American Express Co. (AXP) $298.64 0.75% Goldman Sachs Group Inc. (GS) $639.95 0.74% Boeing Co. (BA) $198.85 0.59% Walt Disney Co. (DIS) $118.54 0.58%

Dow Jones - Fallers

Dow Chemical Co. (DOW) $28.17 -1.18% International Business Machines Corporation (CDI) (IBM) $281.35 -0.66% Johnson & Johnson (JNJ) $149.79 -0.62% Merck & Co. Inc. (MRK) $78.86 -0.55% Visa Inc. (V) $339.05 -0.39% McDonald's Corp. (MCD) $288.92 -0.25% Unitedhealth Group Inc. (UNH) $306.70 -0.16%

S&P 500 - Risers

Under Armour Inc. Class A (UAA) $6.67 8.10% Under Armour, Inc. (UA) $6.23 6.31% Kroger Co. (KR) $69.19 5.60% Advanced Micro Devices Inc. (AMD) $132.16 4.24% Mondelez International Inc. (MDLZ) $67.76 2.13% Macy's Inc. (M) $11.30 2.08% Microchip Technology Inc. (MCHP) $69.41 2.04% Carmax Inc. (KMX) $65.64 2.04% Paypal Holdings Inc (PYPL) $69.95 2.01% Charter Communications Inc. (CHTR) $384.79 1.95%

S&P 500 - Fallers

Accenture Plc (ACN) $281.82 -8.02% Eli Lilly and Company (LLY) $756.88 -3.59% Albemarle Corp. (ALB) $57.81 -2.69% Nektar Therapeutics (NKTR) $8.38 -2.67% Cognizant Technology Solutions Corp. (CTSH) $77.16 -2.50% Arista Networks Inc. (ANET) $88.36 -2.08% Vertex Pharmaceuticals Inc. (VRTX) $440.12 -1.85% Robert Half Inc. (RHI) $40.79 -1.34% Dollar General Corp (DG) $110.86 -1.29% Broadcom Inc. (AVGO) $249.08 -0.87%

Nasdaq 100 - Risers

Vodafone Group Plc ADS (VOD) $10.30 2.54% Mondelez International Inc. (MDLZ) $67.76 2.13% Microchip Technology Inc. (MCHP) $69.41 2.04% Paypal Holdings Inc (PYPL) $69.95 2.01% Charter Communications Inc. (CHTR) $384.79 1.95% Apple Inc. (AAPL) $200.39 1.94% Sirius XM Holdings Inc (SIRI) $21.85 1.68% Intel Corp. (INTC) $21.81 1.49% Netflix Inc. (NFLX) $1,239.77 1.43% Fiserv Inc. (FI) $163.65 1.42%

Nasdaq 100 - Fallers

Cognizant Technology Solutions Corp. (CTSH) $77.16 -2.50% JD.com, Inc. (JD) $31.86 -1.95% Vertex Pharmaceuticals Inc. (VRTX) $440.12 -1.85% Qvc Group Inc Series A (QVCGA) $3.15 -1.41% Broadcom Inc. (AVGO) $249.08 -0.87% Regeneron Pharmaceuticals Inc. (REGN) $511.39 -0.43% Dollar Tree Inc (DLTR) $97.16 -0.38% Paychex Inc. (PAYX) $149.88 -0.29% Cintas Corp. (CTAS) $219.89 -0.24% Incyte Corp. (INCY) $68.14 -0.19%