U.S. index futures point to a higher open in pre-market trading on Friday, with investors preparing for the Federal Reserve’s preferred inflation report. Despite pre-market optimism, the week promises to be negative, with the S&P 500 and Nasdaq facing sharp losses due to sell-offs in big tech and a shift to smaller companies and cyclical sectors. Along with the personal consumption expenditures report, traders await quarterly results from major companies including Bristol Myers Squibb, 3M, and Colgate-Palmolive.
At 5:12 AM, Dow Jones futures (DOWI:DJI) rose 197 points, or 0.48%. S&P 500 futures gained 0.79%, and Nasdaq-100 futures advanced 1.06%. The 10-year Treasury yield stood at 4.244%.
In the commodities market, oil prices are down for the third consecutive week due to weak demand in China and hopes of a ceasefire in the Middle East. West Texas Intermediate crude for September fell 0.37% to $77.99 per barrel. Brent crude for September fell 0.33% to near $82.10 per barrel.
On Friday’s economic calendar, the PCE index, which measures individual spending, and June’s personal income and spending data will be released at 8:30 AM by the Commerce Department. At 10 AM, the revised reading of the Michigan/Reuters consumer sentiment index for July will be published by the University of Michigan and Thomson Reuters.
Asia-Pacific markets recovered on Friday. China’s Shanghai Composite rose 0.14%, Hong Kong’s Hang Seng rose 0.1%, Australia’s S&P/ASX 200 advanced 0.76%, and South Korea’s Kospi grew 0.78%. Conversely, the Taiwan Weighted Index fell 3.29% after being closed for two days due to a typhoon, with Hon Hai and TSMC falling 4.71% and 5.62%, respectively. Japan’s Nikkei 225 fell 0.53%, continuing its losing streak, with sharp declines in Renesas Electronics and automakers.
In July, Tokyo’s core inflation slightly fell to 2.2%, while the core inflation dropped to 1.5%. The yen strengthened to 153.9 against the dollar. Singapore maintained its monetary policy stable, controlling the Singapore dollar through exchange rate settings.
European markets are higher, with the automotive sector falling in reaction to Mercedes Benz’s (TG:A3LJT7) reduced profit forecast and a 48% decline in Stellantis’s (BIT:STLAM) first-half net profit.
In France, ahead of the Paris Olympic Games, train services were affected by arson and vandalism on the high-speed rail network. SNCF reported that trains were canceled and rerouted, also impacting Eurostar and international services, while an investigation is ongoing.
U.S. stocks faced heavy selling in the last hour of Thursday’s session due to concerns about big tech earnings. The Dow Jones rose 0.20%, while the S&P 500 and Nasdaq fell, closing down 0.51% and 0.93%, respectively. Positive U.S. GDP data, which grew 2.8% versus estimates of a 2% increase in the second quarter, initially boosted stocks but failed to sustain gains throughout the day.
In Friday’s pre-market earnings, Bristol Myers Squibb (NYSE:BMY), 3M (NYSE:MMM), Colgate-Palmolive (NYSE:CL), Charter Communications (NASDAQ:CHTR), Bozz Allen Hamilton (NYSE:BAH), Saia (NASDAQ:SAIA), Centene Corporation (NYSE:CNC), First Hawaiian Bank (NASDAQ:FHB), Gentex Corporation (NASDAQ:GNTX), Portland General Electric (NYSE:POR), T.Rowe Price (NASDAQ:TROW), and more will report.