U.S. stock index futures inched higher on Friday, buoyed by signs of a resilient U.S. economy, even as Netflix’s market-beating quarterly profit failed to dazzle investors.
At 5:30 a.m. ET, S&P 500 E-minis were up 8.75 points, or 0.14 per cent, Nasdaq 100 E-minis were up 33 points, or 0.14 per cent, and Dow E-minis were up 66 points, or 0.15 per cent.
In Canada, futures on the S&P/TSX index rose 0.2 per cent at 1,636.40 points by 06:20 a.m. ET.
Wall Street’s winning streak continued overnight, with the S&P 500 and the Nasdaq notching fresh record closes after upbeat data on retail sales and jobless claims signaled a healthy U.S. economy. The data gives the Federal Reserve some breathing room to assess the inflationary effects of U.S. tariffs.
Netflix rode the success of Squid Game to top earnings estimates and boost its revenue outlook for the year. Yet, the streaming giant’s shares slipped 1.5 per cent in premarket trading. It has risen 43 per cent this year.
All eyes remain on whether President Donald Trump’s tariff measures are starting to ripple through the economy. The Fed has signaled it will stay the course on interest rates until it sees clearer signs of how higher import taxes are shaping inflation.
Traders now put the odds of a rate cut in September at about 56.3 per cent, with a July move nearly off the table, according to CME’s FedWatch tool.
“This week’s data supports the wait-and-see camp on the Fed. Tariffs are percolating to consumer prices but is not withholding households from opening their wallets,” said Kenneth Broux, head of corporate research and rates, at Societe Generale.
Federal Reserve Governor Christopher Waller signaled on Thursday that mounting economic risks and tame inflation have him backing an interest rate cut by this month’s end, downplaying concerns that tariffs will fuel lasting price hikes.
As the second-quarter earnings season gets underway, early results from 36 S&P 500 companies that reported, more than 80 per cent have topped Wall Street’s earnings expectations, according to LSEG I/B/E/S data.
The S&P 500 and the Dow are on track for only modest advances this week, as investors navigate a swirl of mixed signals – robust retail sales, a spike in consumer inflation, and a stall in producer prices for June.
Alphabet and Tesla are among the companies reporting half-year results next week, which will further test the market mood.
Cryptocurrency stocks rose after the U.S. House of Representatives passed a bill that would develop a regulatory framework for cryptocurrencies.
Robinhood Markets and Coinbase Global gained 1.9 per cent each, while Bitfarms rose 2.8 per cent and Hut 8 advanced 1.3 per cent.
Overseas, Asian shares outside Japan up 0.9 per cent, while European stocks were last up 0.4 per cent. Wall Street futures were also up around 0.1 per cent.
The U.S. dollar was broadly flat against the yen at 148.65 but was down nearly 1 per cent this week after polls showed Prime Minister Shigeru Ishiba’s coalition was in danger of losing its majority in the upper house election on Sunday.
Data on Friday showed Japan’s core inflation slowed in June due to temporary cuts in utility bills but stayed above the central bank’s 2 per cent target. The rising cost of living, including the soaring price of rice, is among the reasons for Ishiba’s declining popularity.
“If PM Ishiba decides to resign on an election loss, USDJPY could easily break above 149.7 as it would usher in an initial period of political turbulence,” said Jayati Bharadwaj, head of FX strategy at TD Securities.
“JPY could reverse the recent dramatic weakness if the ruling coalition wins and is able to make swift progress on a trade deal with Trump.”
In currency markets, the U.S. dollar index slipped 0.1 per cent to 98.365, but was heading for a second successive weekly gain, bouncing from a 3-1/2 year low hit over two weeks ago.
Treasury yields were slightly lower. Benchmark 10-year U.S. Treasury yields dropped 2 basis points to 4.44 per cent, two-year yields also edged 2 bps lower to 3.90 per cent.
Oil prices extended gains on Friday, after drone strikes on Iraqi Kurdistan oil fields fueled supply concerns.
U.S. crude rose 0.4 per cent to US$67.81 per barrel and Brent also rose 0.4 per cent to US$69.79 a barrel. Spot gold prices gained 0.3 per cent to US$3,348 an ounce.
– Reuters
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