US open: Stocks trade higher following yesterday's sell-off
Wall Street stocks were in the green on Friday after concerns about an increase in capital gains taxes prompted a market-wide sell-off yesterday.
As of 1540 BST, the Dow Jones Industrial Average was up 0.44% at 33,963.79, while the S&P 500 was 0.67% firmer at 4,162.75 and the Nasdaq Composite came out the gate 0.94% stronger at 13,947.99.
The Dow opened 147.89 points higher on Friday, cutting into loss recorded a day earlier.
Concerns that the White House could seek a hike to the capital gains tax were still doing the rounds on Friday after a proposal from the Biden administration did the rounds on Thursday, with the rate rumoured to jump to 39.6% for those earning $1.0m or more, up from 20%.
Corporate earnings were also in focus again, with Intel posting quarterly revenue and earnings that were better than expected, but second-quarter earnings guidance came in below analysts' expectations, while social media firm Snap reported accelerated revenue growth and strong user numbers during the first quarter, breaking even on the bottom line and posting revenues of $770.0m.
American Express shares were under pressure after revenues fell short of expectations, while Honeywell stock was also in focus after warning that its two largest units were "trending toward the low end" of 2021 full-year forecasts.
Moving on to macro news, factory activity steamed ahead in the first half of April, according to IHS Markit, which said its flash manufacturing PMI had increased to 60.6 in early April - the highest reading since the series started in May 2007.
Elsewhere, new home sales in the States rocketed last month, according to the Department of Commerce, which revealed that in seasonally adjusted terms, new home sales shot higher by 20.7% on the month to reach an annualised pace of 1.02m. Economists had pencilled-in an increase to 868,000.
Versus a year ago, growth in new home sales was running at up by 66.8%, with sales in the Northeast having risen by 108.7%.