Stocks open higher; S&P 500 heads for another weekly gain | National/World News

Stocks are opening higher on Wall Street, keeping the S&P 500 on track for its fourth weekly gain in a row. The benchmark index was up 0.3% in the early going Friday, led by gains in banks, industrial and health care companies. Declines in several big technology stocks including Apple weighed down the Nasdaq, which fell 0.2%. The early gains, if they hold, would push the S&P 500 past the record high close it set a day earlier. Crude oil prices were flat. European markets were higher and Asian markets closed higher. The yield on the 10-year Treasury note rose to 1.57%

THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.

TOKYO (AP) — Global shares advanced Friday after China reported its economy expanded at an 18% annual pace in the first quarter of the year.

France’s CAC 40 added 0.2% in early trading to 6,247.86 while Germany’s DAX gained 0.6% to 15,352.50. Britain’s FTSE 100 rose 0.4% to 7,013.48. U.S. shares were set for a slow start, with Dow futures inching up less than 0.1% at 33,925.0. S&P 500 futures fell 0.1% to 4,159.90.

Jubilance over positive Chinese and U.S. economic data and another record high on Wall Street was tempered by caution over coronavirus outbreaks in the region, where rollouts of the vaccine have lagged.

Japan’s benchmark Nikkei 225 gained 0.1% to finish at 29,683.37. Australia’s S&P/ASX 200 recouped earlier losses, rising 0.1% to 7,063.50. South Korea’s Kospi added 0.1% to 3,198.62. Hong Kong’s Hang Seng added 0.6% to 28,969.71, while the Shanghai Composite gained 0.8% to 3,426.62.

The contrast between the speed of vaccine rollouts in the U.S. and Asia has been striking. Nearly half of American adults have gotten at least one dose of the vaccine, and about 30% of adults in the U.S. have been fully vaccinated, according to the Centers for Disease Control and Prevention.

Japan, where inoculations for the public have barely started, has seen a resurgence of infections in recent weeks. The country’s western metropolis of Osaka reported more than 1,200 new infections Thursday, its highest since the pandemic began. A top ruling party official suggested the possibility of canceling the Tokyo Olympics, set to start in July, if infections continue to surge.

Japan decided on measures to stem the rise of infections for several additional areas, Kanagawa, Chiba and Saitama prefectures, near Tokyo, as well as Aichi in central Japan. Six areas, including major cities of Tokyo and Osaka, were already under such measures, which has restaurants closing at 8 p.m. The government is also asking people to social distance and avoid gathering in crowds.

Prakash Sakpal and Nicholas Mapa, senior economists for ING, said the markets are awaiting the outcome of a meeting between Japanese Prime Minister Yoshihide Suga and President Joe Biden, set for the weekend.

China’s economy expanded at a sizzling annual pace of 18.3% in the first quarter of the year. But its rebound in factory and consumer activity following the coronavirus pandemic is leveling off, according to data released Friday. The figures were magnified by comparison with early 2020, when China suffered its deepest contraction in decades.

Investors are welcoming a raft of encouraging economic reports showing how hungry Americans are to spend again, how fewer workers are losing their jobs and how much fatter corporate profits are getting.

Expectations are very high on Wall Street that the economy — and thus corporate profits — are rebounding thanks to COVID-19 vaccinations and massive support from the U.S. government and Federal Reserve. New data on retail sales and jobless claims Thursday reinforced the view that the recovery is accelerating.

Much of the surge in the U.S. was due to $1,400 payments from the U.S. government’s latest economic rescue effort hitting households’ bank accounts. Economists said that shows how primed people are to spend as the economy reopens and conditions brighten. That’s huge for an economy that’s made up mostly of consumer spending.

An encouraging read on the job market showed 576,000 people applied for unemployment benefits last week, well below the 700,000 that economists had forecast and down from 769,000 the prior week. It’s also the lowest number since the pandemic began.

Adding to the optimism, more big U.S. companies reported even healthier profits for the first three months of 2021 than analysts had forecast. Expectations are already high for this earnings reporting season, which unofficially got underway on Wednesday and could result in the strongest growth in more than a decade.

In energy trading, benchmark U.S. crude lost 3 cents to $63.43 a barrel in electronic trading on the New York Mercantile Exchange. It gained 31 cents to $63.46 per barrel on Thursday. Brent crude, the international standard, added 3 cents to $66.97 a barrel.

In currency trading, the U.S. dollar rose to 108.86 Japanese yen from 108.73 yen. The euro cost $1.1978, up from $1.1970.

Copyright 2021 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.

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