Futures Pointing To Modestly Higher Open On Wall Street

The major U.S. index futures are currently pointing to a modestly higher open on Friday, with stocks likely to move back to the upside following the pullback seen during trading on Wednesday.

Traders may look to pick up stocks at somewhat reduced levels following the weakness seen in the previous session, which pulled the Dow and the S&P 500 down off Tuesday’s record closing highs.

Activity is likely to be relatively subdued, however, as many traders remain away from their desks following the Thanksgiving Day holiday on Thursday.

A lack of major U.S. economic data may also keep traders ahead of the release of several closely watched reports next week.

The Labor Department’s monthly jobs report is likely to be in focus next week, while traders are also likely to keep an eye on reports on manufacturing and service sector activity.

After trending higher over the past several sessions, stocks gave back some ground during trading on Wednesday. The tech-heavy Nasdaq led the way lower.

The Nasdaq climbed well off its worst levels of the day but still closed down 115.10 points or 0.6 percent at 19,060.48. The Dow fell 138.25 points or 0.3 percent to 44,722.06 and the S&P 500 slid 22.8 points or 0.4 percent to 5,998.74, snapping a seven-session winning streak.

The pullback by the Nasdaq came amid substantial weakness among computer hardware stocks, with the NYSE Arca Computer Hardware Index plunging by 3.3 percent.

PC makers Dell Technologies (DELL) and HP Inc. (HPQ) plummeted by 12.3 percent and 11.4 percent, respectively, after providing disappointing earnings guidance.

Significant weakness was also visible among software stocks, as reflected by the 1.6 percent loss posted by the Dow Jones U.S. Software Index.

Weakness among semiconductor and networking stocks also weighed on the Nasdaq, while biotechnology stocks showed a strong move to the upside.

The weakness in the broader markets came after the Commerce Department released closely watched consumer price inflation data that matched expectations.

The Commerce Department said its personal consumption expenditures (PCE) price index rose by 0.2 percent in October, matching the uptick seen in September as well as economist estimates.

The annual rate of growth by the PCE price index accelerated to 2.3 percent in October from 2.1 percent in September, which was also in line with expectations.

Excluding food and energy prices, the core PCE price index climbed by 0.3 percent in October, matching the increase seen in September as well as economist estimates.

The annual rate of growth by the core PCE price index crept up to 2.8 percent in October from 2.7 percent in September, which was also in line with expectations.

While the faster year-over-year price growth was in line with estimates, the acceleration may still have raised concerns about the outlook for interest rates.

“Whilst the CME Fedwatch tool suggests markets still broadly expect a further rate cut from the Federal Reserve next month, there is a concern that the pace of cuts is likely to slow as central bankers respond to the sticky nature of prices in core areas as well as fears about how Trump’s tariffs might impact the U.S. consumer,” said AJ Bell head of financial analysis Danni Hewson.

The inflation readings, which are preferred by the Federal Reserve, largely overshadowed a slew of other U.S. economic data.

Commodity, Currency Markets

Crude oil futures are rising $0.52 to $69.24 a barrel after edging down $0.05 to $68.72 a barrel on Wednesday. Meanwhile, after climbing $18.50 to $2,664.80 an ounce in the previous session, gold futures are advancing $18.30 to $2,683.10 an ounce.

On the currency front, the U.S. dollar is trading at 150.00 yen versus the 151.55 yen it fetched on Thursday. Against the euro, the dollar is valued at $1.0556 compared to yesterday’s $1.0552.

Asia

Asian stocks ended mixed on Friday, with a stronger yen amid Bank of Japan rate hike bets weighing on Japanese markets, while Chinese stocks logged strong gains on stimulus expectations heading into a key economic meeting next month.

The Japanese yen briefly breached the key level of 150 against the dollar after core inflation in the capital region came in above the 2 percent target, boosting expectations for an interest rate hike in the near-term.

On the contrary, Japanese industrial production and retail sales registered weaker-than-expected growth in November.

The dollar fell alongside yields, helping gold prices push higher by nearly 1 percent in Asian trading. Brazil’s real tumbled to a record low due to uncertainty over the fiscal outlook.

Oil prices drifted lower after OPEC+ announced a postponement of its highly anticipated meeting to discuss production strategies.

China’s Shanghai Composite Index rallied 0.9 percent to 3,326.46 amid speculation Beijing will provide more support for the economy at a key policy meeting in December.

Additionally, in a significant move, Beijing said it will extend tariff exemptions for the import of some U.S. products until February 28, 2025, signifying a potential easing in trade barriers amid U.S. trade tensions.

Hong Kong’s Hang Seng Index rose 0.2 percent to 19,423.61 after a choppy session.

Japanese markets declined as the yen strengthened on BOJ rate hike speculation in response to hotter-than-expected inflation data.

Markets, however, ended off their day’s lows after reports Japan may delay a decision on raising taxes to help cover rising defense spending.

The Nikkei 225 Index closed 0.4 percent lower at 38,208.03 and fell 0.2 percent for the week, marking its third consecutive week of losses. The broader Topix Index settled 0.2 percent lower at 2,680.71.

Exporters Sony, Toyota Motor and Nissan shed 2-4 percent, while tech stocks like SoftBank and Tokyo Electron fell 1-2 percent.

Seoul stocks fell the most in the region, a day after the Bank of Korea surprised markets with an interest rate cut, citing slower-than-expected economic growth.

An increasingly tense geopolitical environment on the Korean Peninsula also weighed on investors’ risk appetite, sending the benchmark Kospi down 2.0 percent to 2,455.91.

Australian markets finished marginally lower and bond yields fell across the curve as Reserve Bank Governor Michele Bullock warned of prolonged restrictive monetary policy, saying inflation is “too high” to consider interest rate cuts.

Across the Tasman, New Zealand’s benchmark S&P/NZX-50 Index inched up 0.1 percent to close at 13,066.92.

Europe

European stocks are turning in a mixed performance on Friday as traders digest euro zone inflation data for November…

While the U.K.’s FTSE 100 Index is down by 0.2 percent, the French CAC 40 Index is up by 0.1 percent and the German DAX Index is up by 0.3 percent.

Preliminary data showed earlier today that France’s harmonized inflation rate rose 1.7 percent in November from 1.6 percent in October, matching expectations and remaining well below the European Central Bank’s 2 percent target.

Elsewhere, official data showed German retail sales fell more than expected in October, falling 1.5 percent month-on-month.

Mining stocks have moved mostly higher amid growing expectations for new stimulus ahead of a key policy meeting in China next month.

Insurer Aviva was marginally higher on reports that it has approached shareholders of its smaller rival, Direct Line, signaling a hostile takeover bid.

Delivery Hero SE, an online food delivery platform, has also rissen after it set the price for its Middle Eastern unit’s initial public offering at the top of its range.

On the other hand, Caffyns, a motor retailer, has shown a notable move to the downside after reporting flat revenue growth for the first half.

U.S. Economic News

No major U.S. economic data is scheduled to be released today.