Gold price rebounds on short covering, bargain buying

Asian and European stock markets were mixed overnight. U.S. stock indexes are pointed toward slightly higher when the New York day session begins. Trader and investor attitudes are a bit more upbeat to end the trading week, on reports that U.S. lawmakers are moving closer to a deal to raise the U.S. government’s debt limit. The Wall Street Journal reported Republican and Democrat leaders are narrowing their differences and are zeroing in on a two-year spending deal that would raise the debt limit for two years. Lawmakers are hoping to see a deal pass through Congress next week.

A feature in the marketplace Thursday was the big rally in Nvidia stock following its strong earnings report. Some stock analysts and fund managers are saying the Nvidia stock rally is a wake- up call: artificial intelligence (AI) will have a bigger impact on global society than the advent of the internet nearly 30 years ago.

The U.S. data point of the day is the personal income and outlays report for April, including the important personal consumption expenditures (PCE) price indexes. Personal income is seen up 0.4% from March. The PCE core price index is seen up 4.6%, year-on-year, which is the same as seen in the March report.

The key outside markets today see the U.S. dollar index weaker on a corrective pullback after hitting a two-month high Thursday. Nymex crude oil prices are firmer and trading around $72.25 a barrel. Meantime, the benchmark 10-year U.S. Treasury note yield is presently fetching 3.783%.  

Other U.S. economic data due for release Friday includes durable goods orders, the advance economic indicators report and the University of Michigan consumer sentiment survey.