US stocks were eyeing gains for the third straight day on Friday, on pace for the first weekly gain in the past three after erasing Monday's steep declines.
Four minutes before the closing bell, the S&P 500 index was up 0.2% to 4,457.27 and the Dow Jones Industrial Average added 0.1% to 34,812.92. The Nasdaq Composite was nearly flat at 15,046.28.
Banks, oil drillers and railroads fared the best, while health care and real estate stocks lagged.
The 10-year US Treasury yield rose 5 basis points to 1.46%, the highest since mid-July after the Federal Reserve earlier this week signaled plans to reduce asset purchases.
Sales of new US single-family homes rose 1.5% in August from the upwardly revised seasonally adjusted annual rate in July. The average price held steady at $390,900, as homebuilders began catching up with the pandemic-fueled surge in demand by boosting the inventory of unsold homes to a 13-year high.
"As the economy recovers from this pandemic shock, its path is likely to confound our assumptions about what a return to normal might look like. The same is true for the monetary policy normalization process," said Kansas City Federal Reserve Bank President Esther George in a speech Friday. George, a monetary policy hawk, pointed to persistent reports of labor shortages, saying many older workers have retired permanently since the pandemic started.
Nike (NKE) shares slumped 6.2% after the athletic footwear and apparel manufacturer cut its full-year revenue guidance for fiscal 2022, citing factory shutdowns and shipping delays amid the COVID-19 pandemic.
Costco (COST) reported supply chain struggles as well, limiting purchases of paper goods, water and cleaning supplies newly in demand amid the latest COVID-19 wave. Its stock fared better, rising 3.3% after quarterly earnings exceeded analysts' expectations.