US index futures rose in pre-market trading Friday, with optimism around corporate earnings and lower Treasury yields.
At 5:18 AM ET, Dow Jones futures (DOWI:DJI) were up 85 points, or 0.20%. S&P 500 futures gained 0.25%, and Nasdaq-100 futures advanced 0.29%. The 10-year Treasury yield stood at 4.20%.
In commodities, West Texas Intermediate crude for December increased 0.51% to $70.55 a barrel, while December Brent rose 0.44% to $74.71.
Traders are closely watching Middle East geopolitics, including potential Israel-Hamas talks and possible Israeli reprisals on Iran, which could impact global supply. Tony Sycamore of IG suggested $70 as an ideal crude price, factoring in Israel’s responses to Iranian attacks and China’s Standing Committee meeting.
Today’s U.S. economic agenda includes September’s durable goods orders report at 8:30 a.m., expected to show a 1.0% decrease after last month’s stability. At the same time, the durable goods report excluding transportation is expected to reflect a 0.5% previous change. At 10:00 a.m., October’s final consumer sentiment index, projected at 69.0, will be slightly up from 68.9 last month.
In the Asia-Pacific markets, Japan’s Nikkei 225 fell 0.60%, while the Topix declined 0.65%. Hong Kong’s Hang Seng rose 0.52% in final trading, and China’s CSI 300 increased 0.70%. In South Korea, the Kospi rose marginally, while the Kosdaq fell 0.98%. Australia’s S&P/ASX 200 edged up 0.06%.
The People’s Bank of China held its medium-term lending rate steady at 2%, signaling a cautious approach to stimulus after a recent record cut aimed at supporting growth. Beijing is evaluating additional measures, including a potential reserve requirement cut to enhance market liquidity.
Chinese solar stocks rose this week, boosted by government intervention expectations to curb polysilicon overproduction, strengthening the sector. Xinjiang Daqo, Trina Solar, and Xinyi Solar led gains. Analysts suggest supply limitations may drive further solar stock gains, with technical patterns indicating ongoing growth potential.
Goldman Sachs (NYSE:GS) reports global hedge funds have shifted from Chinese and emerging markets stocks to U.S. equities in October amid U.S. election influences. China saw major outflows following vague stimulus, while MSCI China fell 4% in October. Hedge funds also lowered leverage for added caution.
Tokyo’s core inflation, excluding fresh foods, rose 1.8% in October, below the BOJ’s 2% target and down from September’s 2%. The core-core index (excluding fresh foods and fuel) increased 1.8% versus 1.6% in September. Service prices rose 1.1% in October, slightly below last month’s 1.2%.
A Reuters survey indicated Japan’s industrial output likely grew 1.0% in September, driven by automotive sector recovery after a 3.3% August decline due to typhoons and low U.S. demand. Retail sales are also expected to rise 2.3%, with unemployment steady at 2.5%.
In Singapore, home prices fell 0.7% in Q3, lower than expected, amid higher September sales. Residential rents rose for the first time since 2023, raising affordability concerns. The government plans to boost supply, while developers resist price cuts, buoyed by high-demand new projects.
Singapore’s industrial output rose 9.8% in September, surpassing Reuters’ 3.5% forecast but below August’s revised 22% increase.
European markets traded lower Friday, impacted by disappointing earnings from Remy Cointreau (EU:RCO) and Mercedes-Benz (TG:MBG), weighing on market sentiment. The Stoxx Europe 600 fell under pressure from auto and luxury sectors, highly exposed to China’s economy. However, Sanofi (EU:SAN) saw gains driven by vaccine demand.
On Thursday, the Nasdaq and S&P 500 rose, while the Dow declined for the fourth straight day. Tech rebounded with Tesla (NASDAQ:TSLA) up 21.9% after robust earnings. IBM (NYSE:IBM) and Honeywell (NASDAQ:HON), however, weighed on the Dow. Real estate stocks rose with strong home sales, while airline stocks fell, led by Southwest (NYSE:LUV).
On the quarterly earnings front, New York Community Bancorp (NYSE:NYCB), Colgate-Palmolive (NYSE:CL), Piper Sandler (NYSE:PIPR), Centene (NYSE:CNC), Booz Allen Hamilton (NYSE:BAH), Aon (NYSE:AON), Avantor (NYSE:AVTR), Saia (NASDAQ:SAIA), Newell Brands (NASDAQ:NWL) and WisdomTree (NYSE:WT) are expected to report before the open.