Futures Pointing To Roughly Flat Open On Wall Street

The major U.S. index futures are currently pointing to a roughly flat open on Friday, with stocks likely to show a lack of direction following the weakness seen in the previous session.

Uncertainty about the outlook for the markets may keep some traders on the sidelines following yesterday’s weakness, which saw the S&P 500 pull back off its record highs.

Traders may also be reluctant to make significant moves ahead of earnings news from Nvidia (NVDA), as the AI darling is due to report its quarterly results after the close of trading next Wednesday.

Next week will also see the release of the Federal Reserve’s preferred readings on consumer price inflation, which could impact the outlook for interest rates.

Nonetheless, while the broader markets may lack direction, a steep drop by shares of UnitedHealth (UNH) is likely to weigh on the Dow.

The Dow futures are down by 0.6 percent, as UnitedHealth is plunging by 12.4 percent in pre-market trading after a report from the Wall Street Journal said the Justice Department has launched an investigation into the health insurance giant’s Medicare billing practices in recent months.

After moving sharply lower early in the session, stocks regained some ground over the course of the trading day on Thursday. The major averages climbed well off their early lows but remained firmly in negative territory.

The S&P 500 fell as much as 1.0 percent in early trading but ended the day more moderately lower, down 26.63 points or 0.4 percent at 19,962.36. The Nasdaq also slid 93.89 points or 0.5 percent to 19,962.36 after tumbling as much as 1.3 percent.

The narrower Dow posted a more significant loss, slumping 450.94 points or 1.0 percent to 44,176.65.

The early sell-off on Wall Street came amid a slump by shares of Walmart (WMT), with the retail giant and Dow component plunging by 6.5 percent.

Walmart came under pressure after the company reported better than fiscal fourth quarter earnings but provided disappointing guidance for the current year.

Traders may also been looking to cash in on the recent upticks by stocks, which lifted the S&P 500 to record highs despite ongoing tariff concerns and indications the Federal Reserve is likely to keep interest rates on hold for some time.

On the U.S. economic front, a report released by the Labor Department showed a modest increase by first-time claims for U.S. unemployment benefits in the week ended February 15th.

The Labor Department said initial jobless claims rose to 219,000, an increase of 5,000 from the previous week’s revised level of 214,000.

Economists had expected jobless claims to inch up to 215,000 from the 213,000 originally reported for the previous week.

The Federal Reserve Bank of Philadelphia also released a report showing Philadelphia-area manufacturing activity continued to expand in the month of February, although the index of activity in the sector pulled back sharply.

Financial stocks turned in some of the market’s worst performances, with the KBW Bank Index and NYSE Arca Broker/Dealer Index tumbling by 2.4 percent and 1.9 percent, respectively.

The nosedive by shares of Walmart also weighed on the retail sector, as reflected by the 1.9 percent loss posted by the Dow Jones U.S. Retail Index.

Meanwhile, gold and oil producer stocks moved to the upside on the day amid increases by the prices of their associated commodities.

Commodity, Currency Markets

Crude oil futures are falling $0.49 to $71.99 a barrel after rising $0.38 to $72.48 a barrel on Thursday. Meanwhile, after jumping $20 to $2,956.10 an ounce in the previous session, gold futures are sliding $13.70 to $2,942.40 an ounce.

On the currency front, the U.S. dollar is trading at 150.42 yen versus the 149.64 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.0473 compared to yesterday’s $1.0501.

Asia

Asian stocks ended mixed on Friday as tariff worries offset investor optimism over China’s artificial intelligence potential.

Gold dipped from record highs and the dollar faced a third straight weekly drop, while oil headed for a weekly gain on supply jitters.

China’s Shanghai Composite Index gained 0.9 percent to close at 3,379.11 on optimism toward the technology sector.

In addition, U.S. President Donald Trump’s comments have raised hopes of a de-escalation in the trade war between the world’s two largest economies.

Trump told reporters that a trade deal with China “is possible” in an interview aboard Air Force One.

Hong Kong’s Hang Seng Index soared 4.0 percent to 23,477.92 as tech giant Alibaba reported quarterly revenue and earnings that beat expectations on strong year-end shopping sales.

Alibaba Group shares spiked 14.6 percent as the company’s CEO said the pursuit of artificial general intelligence is now the company’s “primary objective.”

Japanese markets eked out modest gains as the yen retreated after strengthening to a more than two-month high of 150.52 per U.S. dollar on Thursday amid BoJ rate hike bets.

The Nikkei 225 Index rose 0.3 percent to 38,776.94 as Bank of Japan Governor Kazuo Ueda said the central bank would ramp up government bond buying if long-term interest rates rise sharply. The broader Topix Index finished marginally higher at 2,736.53.

Seoul stocks ended little changed, with the Kospi finishing marginally higher at 2,654.58, recovering from an early slide.

Australian markets ended slightly lower, giving up early gains amid increasing geopolitical tensions.

Data showed Australia’s unemployment rate rose further in January even as hiring exceeded expectations. Separately, a survey by S&P Global revealed that business activity in Australia’s private sector rose to a six-month high in February.

The benchmark S&P/ASX 200 Index fell 0.3 percent to 8,296.20, while the broader All Ordinaries index settled 0.4 percent lower at 8,570.90.

Mayne Pharma Group shares soared 33 percent after U.S. pharma giant Cosette made a $672 million bid for the company.

QBE Insurance rallied 3 percent on strong full-year results. Nine Entertainment jumped 20 percent following CoStar’s $2.7 billion bid for Domain.

Across the Tasman, New Zealand’s benchmark S&P/NZX-50 Index slumped 1.0 percent to 12,752.58, marking its fourth consecutive decline and hitting its lowest closing level in two months.

Europe

European stocks are slightly higher on Friday, with earnings and flash PMI readings in focus.

Activity in Germany’s manufacturing sector improved more-than-expected in February, while services sector activity deteriorated slightly, according to a report published by the HCOB survey.

The flash readings for France’s private sector signaled the steepest downturn since September 2023.

Elsewhere, U.K. retail sales expanded at the fastest pace in eight months in January due to the rebound in food store sales volume, the Office for National Statistics said.

Retail sales volume increased 1.7 percent in January from December. The monthly growth reversed a revised fall of 0.6 percent in December.

This was the first increase in five months and was also stronger than the expected growth of 0.4 percent.

While the French CAC 40 Index is up by 0.6 percent, the German DAX Index is up by 0.3 percent and the U.K.’s FTSE 100 Index is up by 0.1 percent,

Air Liquide has jumped. The French industrial gases supplier lifted its medium-term operating margin guidance after posting 2024 sales slightly above expectations.

Swiss construction chemicals maker Sika AG has also shown a notable move to the upside after posting improved full-year earnings.

British food processing and retailing company Associated British Foods has also advanced after launching the second tranche of its share buyback program.

Standard Chartered has also moved sharply higher as it posted strong annual earnings and announced a $1.5 billion share buyback.

Meanwhile, Spanish energy firm Repsol has fallen after cutting its 2030 target for green hydrogen production by up to 63 percent.

U.S. Economic News

The National Association of Realtors is scheduled to release its report on existing home sales in the month of January at 10 am ET. Existing home sales are expected to tumble by 2.8 percent to an annual rate of 4.12 million in January after jumping by 2.2 percent to an annual rate of 4.24 million in December.

Also at 10 am ET, the University of Michigan is due to release its revised reading on consumer sentiment in the month of February. The consumer sentiment index for February is expected to be unrevised from the preliminary reading of 67.8, which was down from 71.1 in January.

San Francisco Federal Reserve President Mary Daly is scheduled to deliver opening remarks before the Macroeconomics and Monetary Policy Conference hosted by the San Francisco Fed at 11:30 am ET.

Also at 11:30 am ET, Federal Reserve Vice Chair Philip Jefferson is scheduled to speak on “Central Bank Communication” at the Macroeconomics and Monetary Policy Conference.