Futures Pointing To Modestly Lower Open On Wall Street

The major U.S. index futures are currently pointing to a modestly lower open on Friday, with stocks likely to give back ground after the Dow jumped to its highest closing level in well over a year on Thursday.

Traders may look to cash in on yesterday’s gains, which also saw the S&P 500 reach its best closing level in four months.

Overall trading activity may be somewhat subdued, however, as traders await remarks by Federal Reserve Chair Jerome Powell.

Later this morning, Powell is scheduled to participate in a fireside chat with Spelman College President Helene Gayle.

Powell and Fed Governor Lisa D. Cook are also due to participate in a roundtable discussion at Spelman College later in the day.

Traders will be looking to Powell’s comments for additional clues about the outlook for interest rates amid optimism the Fed is done raising rates.

After ending Wednesday’s session narrowly mixed, the major U.S. stock indexes once again moved in opposite directions during trading on Thursday. While the Dow moved sharply higher to reach its best closing level in well over a year, the tech-heavy Nasdaq finished the day in the red.

The Dow jumped 520.47 points or 1.5 percent to 35,950.89 and the S&P 500 rose 17.22 points or 0.4 percent to a four-month closing high of 4,567.80.

Meanwhile, the Nasdaq climbed well off its worst levels of the day but still closed down 32.27 points or 0.2 percent to 14,226.22.

The surge by the Dow was due in large part to a spike by shares of Salesforce (CRM), with the cloud software company soaring by 9.4 percent.

Salesforce skyrocketed after the company reported better than expected fiscal third quarter earnings and provided upbeat guidance.

Meanwhile, the decrease by the Nasdaq came amid a rebound by treasury yields, as the yield on the benchmark ten-year note bounced off its lowest levels in over two months.

The increase in treasury yields came even though the Commerce Department released a report showing consumer price growth in the U.S. slowed in line with economist estimates in the month of October.

The report said the annual rate of consumer price growth decelerated to 3.0 percent in October from 3.4 percent in September. The slowdown matched expectations.

Core consumer price growth also slowed in line with estimates, slipping to 3.5 percent in October from 3.7 percent in September. Core consumer prices exclude food and energy prices.

The inflation readings, which are said to be preferred by the Federal Reserve, were included in the Commerce Department’s report on personal income and spending during the month.

Transportation stocks showed a significant move to the upside on the day, with the Dow Jones Transportation Average climbing by 1.4 percent.

Considerable strength was also visible among healthcare stocks, as reflected by the 1.2 percent gain posted by the Dow Jones U.S. Health Care Index.

Steel, banking and pharmaceutical stocks also saw notable strength, while tobacco and semiconductor stocks moved to the downside.

Commodity, Currency Markets

Crude oil futures are inching up $0.10 to $76.06 a barrel after tumbling $1.90 to $75.96 a barrel on Thursday. Meanwhile, after falling $9 to $2,038.10 an ounce in the previous session, gold futures are edging down $1.10 to $2,037 an ounce.

On the currency front, the U.S. dollar is trading at 148.11 yen versus the 148.20 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.0873 compared to yesterday’s $1.0888.

Asia

Asian stocks ended broadly lower on Friday, as mixed economic signals from China pointed to a feeble economic recovery in the world’s second-largest economy.

The dollar slipped to snap two days of gains, while Treasuries held steady as traders weighed Fed rate cut prospects.

Gold was set for a third weekly gain after declining in the previous session. Oil prices extended losses from the previous session and were set for a sixth straight week of declines as skepticism mounted over OPEC+ output cuts.

The OPEC+ group of petroleum producing nations on Thursday agreed to voluntary output cuts totaling about 2.2 million barrels per day for early next year, following a slump in crude prices and predictions of a renewed surplus next year.

China’s Shanghai Composite Index recovered from early losses to finish marginally higher at 3,031.64 after China’s Caixin Manufacturing PMI unexpectedly expanded in November and an unidentified state institution reportedly bought exchange-traded funds. Hong Kong’s Hang Seng Index slumped 1.3 percent to 16,830.30.

Japanese markets edged lower after the release of disappointing manufacturing data. The Nikkei 225 Index slipped 0.2 percent to 33,431.51, while the broader Topix Index settled 0.3 percent higher at 2,382.52.

Chip-testing equipment maker Advantest and Uniqlo operator Fast Retailing both fell over 1 percent, while automaker Toyota Motor rose 1.4 percent.

Seoul stocks tumbled as battery makers and technology stocks declined, affected by a drop in Tesla and Nvidia shares overnight. The Kospi fell 1.2 percent to 2,505.01.

Australian markets snapped a three-day winning streak, with weak manufacturing data and gains in bond yields denting sentiment.

The benchmark S&P/ASX 200 Index dropped 0.2 percent to 7,073.20, with banks and technology stocks pacing the declines. The broader All Ordinaries Index ended down 0.2 percent at 7,285.10.

Across the Tasman, New Zealand’s benchmark S&P NZX-50 Index closed 033 percent higher at 11,367.51 after the S&P 500 notched one of its biggest November rallies on record.

Investors also reacted to improved consumer confidence data and remarks by RBNZ deputy governor Christian Hawkesby that persistently high core inflation “left little room for error” around monetary policy.

Europe

Most European stocks have moved to the upside on Friday, with miners leading the advance on improved manufacturing data from China.

Encouraging Eurozone manufacturing and U.K. house price data has also boosted sentiment ahead of ISM manufacturing PMI readings from the U.S. as well as Fed Chair Jerome Powell’s speech due later in the day.

The Eurozone factory downturn continued in November, but reductions in output, new orders and inventories eased. The HCOB Eurozone Manufacturing PMI, compiled by S&P Global, improved to 44.2 from 43.1 in October.

Elsewhere, U.K. house prices rose by 0.2 percent in November, marking the third successive monthly increase, the latest Nationwide house price index revealed.

While the French CAC 40 Index is up by 0.2 percent, the U.K.’s FTSE 100 Index is up by 0.6 percent and the German DAX Index is up by 0.7 percent.

Anglo American, Antofagasta and Glencore have jumped after China’s Caixin manufacturing activity unexpectedly expanded in November.

The Caixin manufacturing Purchasing Managers’ Index rose to a three-month high of 50.7 in November from 49.5 in October.

AstraZeneca has also moved to the upside after announcing it is discontinuing two phase III trials into hyperkalaemia treatment.

On the other hand, Reinsurer Swiss Re has moved notably lower after it announced new financial targets for 2024.

Bechtle AG, a German IT systems house and e-commerce provider, has also plunged after announcing a convertible bond offering.

Crisis-hit Swedish streaming company Viaplay has also plummeted after announcing plans to raise new equity and restructure its debt.

Capgemini has slipped half a percent. The French information technology services and consulting major said that its Chief Financial Officer, Carole Ferrand, is stepping down to pursue other career opportunities.

U.S. Economic Reports

The Institute for Supply Management is scheduled to release its report on manufacturing activity in the month of November at 10 am ET.

The ISM’s manufacturing PMI is expected to inch up to 47.6 in November from 46.7 in October, although a reading below 50 would still indicate a contraction.

Also at 10 am ET, the Commerce Department is due to release its report on construction spending in the month of October. Construction spending is expected to increase by 0.4 percent.

Chicago Federal Reserve President Austan Goolsbee is also scheduled to participate in a moderated question-and-answer session before the 37th Annual Economic Outlook Symposium at 10 am ET.

At 11 am ET, Federal Reserve Chair Jerome Powell is scheduled to participate in a fireside chat with Spelman College President Helene Gayle.

Powell and Fed Governor Lisa D. Cook are also due to participate in a roundtable discussion at Spelman College at 2 pm ET.

Stocks In Focus

Shares of Ulta Beauty (ULTA) are moving sharply higher in pre-market trading after the beauty products retailer reported fiscal third quarter results that exceeded analyst estimates on both the top and bottom lines.

Media conglomerate Paramount Global (PARA) are also likely to see initial strength after a report from the Wall Street Journal said the company has had discussions with Apple (AAPL) about bundling their streaming services at a discount,

Meanwhile, shares of Marvell Technology (MRVL) may come under pressure after the chipmaker reported better than expected fiscal third quarter results but provided disappointing guidance for the current quarter.

Computer maker Dell (DELL) may also move to the downside after reporting fiscal third quarter earnings that exceeded analyst estimates but weaker than expected revenues.