U.S. stocks: Futures tearing higher after blockbuster Wall Street day

By

BarbaraKollmeyer

Bonds, equity markets still diverging on Fed view


Kissing the bears goodbye with Merry Fedmas.

MADRID (MarketWatch) — U.S. stock futures were tearing higher early Friday a day after a record-busting rally on Wall Street, as equity investors continued to embrace the “patient” Federal Reserve view, which also sparked huge gains in Asia.

Ahead of Europe’s open, which was also set to be sharply up, futures for the S&P 500 index SPH5, +0.31%  jumped 9.2 points, or 0.5%, to 2,069.10. Those for the Dow industrials DJH5, +0.41%  surged 97 points, or 0.6%, to 17,823. Futures for the Nasdaq 100 index NDH5, +0.55%   [surged 26.50 points, or 0.6%, to 4,289.50

Thursday’s eye-popping 421-point surge to 17,778.15 for the Dow industrials DJIA, +2.43%  was the biggest one-day gain in three years, while the S&P 500 index SPX, +2.40%  layered on 48.34 points to 2,061.23, its best one-day gain in two years. Not to be left out, the Nasdaq Composite COMP, +2.24%  surged 2.2% as its components scored big gains.

Also, it was the first time in six years that the Dow managed back-to-back gains of more than 200 points. Here are the best S&P 500 stocks and sectors of 2014

“The divergent interpretation of yesterday’s FOMC continues to spread apart, with equities guys taking it as dovish, whilst FX and bonds guys took it as hawkish,” said Jonathan Sudaria, dealer at London Capital Group. U.S. Treasurys 10_YEAR, +0.18%  saw the biggest one-day selloff in three months on Thursday.

Dan Greenhaus, chief strategist at BTIG, said he has a hard time believing the gains were about that statement. “In the press conference ... Chair Yellen only ruled out a rate hike through the year’s first few months, a somewhat hawkish development (she could have said ‘mid-year’)”.

Energy stocks helped rally stocks to those big gains, and that sector could again get well-bid on Friday as oil prices continued to climb. January crude-oil futures CLF5, +0.31%  rose 53 cents, or 1%, to $54.64 a barrel.

Fed navel-gazing is likely to continue as well, with no economic data on the calendar.

Overseas markets: The Nikkei 225 index NIK, +2.39%  jumped 2.4%, while the Hong Kong Hang Seng HSI, +1.25%  index was up 1.3%. Futures for the German DAX 30 DAX, +0.49%  and French CAC 40 index PX1, +0.63%  were up over 1%.

The dollar USDJPY, +0.53%  continued to gain, rising to ¥119 against the Japanese yen.