Dow futures erase earlier losses, point to opening gain of more than 800 points - msnNOW

U.S. stock futures surged in volatile trading on Friday as Wall Street tried to recoup some of the sharp losses suffered in the previous session, which was the worst since the “Black Monday” market crash in 1987.

© ASSOCIATED PRESS Traders Edward Curran, left, and Jonathan Mueller work on the floor of the New York Stock Exchange, Thursday, March 12, 2020. The deepening coronavirus crisis is sending stocks into another alarming slide on Wall Street, triggering a brief, automatic shutdown in trading for the second time this week.

S&P 500 futures jumped more than 5% to reach their so-called “limit up” level. These limit levels act as a ceiling for buying until regular trading begins and are meant to insure orderly trading. Dow Jones Industrial Average futures were up more than 1,000 points, implying a gain of nearly 1,000 points. Nasdaq 100 futures also surged.

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Apple shares jumped nearly 5% in the premarket after an analyst at Wells Fargo upgraded the tech giant to overweight from equal weight, citing a “compelling risk/reward” outlook.

Futures got a boost in part after House Speaker Nancy Pelosi said U.S. lawmakers and the White House were close to a deal on economic relief amid the coronavirus outbreak. “We’ve resolved most of our differences,” Pelosi told reporters Thursday evening, noting it’s about “testing testing testing.”

Earlier in after-hours trading, Dow futures had indicated an opening loss of 700 points.

The overnight action followed the official end of the record-long bull market run. The S&P 500 plummeted 9.5% in its worst day in more than three decades Thursday, joining the Dow in a bear market, or more than 20% from its recent peak. The Dow also suffered its worst point drop ever and the biggest percentage decline since 1987.

The market’s historic drop on Thursday indicated that investors believe the government’s fiscal plans and the Federal Reserve’s ramped-up funding actions wouldn’t be sufficient to offset the economic impact from the coronavirus.

“I would advocate for pushing money into the hands of companies right now, and into the hands of individuals … and individual consumers because that is really the only thing … that is gonna help at this point,” David Riedel, president and founder of Riedel Research Group, told CNBC’s “Squawk Box Asia” on Friday morning Singapore time.

“When they’re ready to spend, then that V (shaped recovery) ... can take hold and things can start to recover quickly,” he said.

Stocks briefly cut losses Thursday after the Fed said it would conduct three repo operations as part of a stepped-up program to help keep liquidity flowing. The central bank added more than $198 billion to the financial system in a combination of overnight and longer-term offerings. But the market ended up closing at session lows.

“I would advocate for pushing money into the hands of companies right now, and into the hands of individuals … and individual consumers because that is really the only thing … that is gonna help at this point,” David Riedel, president and founder of Riedel Research Group, told CNBC’s “Squawk Box Asia” on Friday morning Singapore time.

“When they’re ready to spend, then that V (shaped recovery) ... can take hold and things can start to recover quickly,” he said.

Stocks briefly cut losses Thursday after the Fed said it would conduct three repo operations as part of a stepped-up program to help keep liquidity flowing. The central bank added more than $198 billion to the financial system in a combination of overnight and longer-term offerings. But the market ended up closing at session lows.

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Dow futures erase earlier losses, point to opening gain of more than 800 points - msnNOW
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