Futures Pointing To Higher Open On Upbeat Apple Earnings, Inflation Data

The major U.S. index futures are currently pointing to a higher open on Friday, with stocks likely to add to the gains posted during yesterday’s volatile session.

Apple (AAPL) may help lead an early advance on Wall Street, as the tech giant is surging by 4.3 percent in pre-market trading,

The jump by shares of Apple comes after the company reported fiscal first quarter results that exceeded analyst estimates on both the top and bottom lines.

Semiconductor giant Intel (INTC) is also seeing pre-market strength after reporting fourth quarter earnings that exceeded analyst estimates.

Early buying interest may also be generated in reaction to a closely watched Commerce Department report showing consumer prices in the U.S. increased in line with economist estimates in the month of December.

The Commerce Department said its personal consumption expenditures (PCE) price index rose by 0.3 percent in December after inching up by 0.1 percent in November. The increase matched expectations.

The annual rate of growth by the PCE price index accelerated to 2.6 percent in December from 2.4 percent in November, which was also in line with estimates.

Excluding food and energy prices, the core PCE price index crept up by 0.2 percent in December following a 0.1 percent uptick in November. The core price growth also matched expectations.

The annual rate of growth by the core PCE price index in December came in at 2.8 percent, unchanged from the two previous months and in line with estimates.

The inflation readings, which are preferred by the Federal Reserve, were included in a report on personal income and spending.

Stocks saw considerable volatility over the course of the trading session on Thursday, with the major averages showing wild swings back and forth across the unchanged line before eventually closing in positive territory.

The Dow climbed 168.61 points or 0.4 percent to 44,882.13, ending the day within striking distance of the record closing high set in early December.

The S&P 500 also advanced 31.86 points or 0.5 percent to 6,071.17, while the Nasdaq rose 49.43 points or 0.3 percent to 19,681.75.

The major averages moved sharply lower late in the session after President Donald Trump said he would follow through on his threat to impose 25 percent tariffs on imports from Canada and Mexico on Saturday, February 1st.

However, the major averages rebounded going into the close, reflecting the significant volatility seen throughout the session.

The choppy trading on the day came amid a mixed reaction to earnings news from several big-name companies.

Shares of IBM Corp. (IBM) skyrocketed by 13.0 percent after the tech giant reported fourth quarter earnings that exceeded analyst estimates.

Facebook parent Meta Platforms (META) also posted a notable gain after reporting fourth quarter results that beat estimates on both the top and bottom lines.

On the other hand, shares of Microsoft (MSFT) plunged by 6.2 percent after the software giant reported better than expected fiscal second quarter results but provided disappointing revenue guidance for the current quarter.

Delivery giant UPS (UPS) also showed a substantial move to the downside, plummeting by 14.1 percent after reporting fourth quarter earnings that beat expectations but forecasting full-year revenue below analyst estimates.

UPS also announced it has reached an agreement with Amazon (AMZN) to lower its volume by more than 50 percent by the second half of 2026.

In U.S. economic news, the Commerce Department released a report showing U.S. economic growth in the fourth quarter of 2024 slowed by more than expected.

Gold stocks moved sharply higher as the price of the precious metal reached highs, driving the NYSE Arca Gold Bugs Index up by 4.1 percent to its best closing level in well over a month.

Interest rate-sensitive utilities and housing stocks also saw considerable strength, with the Dow Jones Utility Average and the Philadelphia Housing Sector Index surging by 2.4 percent and 2.3 percent, respectively.

Significant strength was also visible among semiconductor stocks, as reflected by the 2.3 percent jump by the Philadelphia Semiconductor Index.

Networking, airline and pharmaceutical stocks also saw notable strength, while the steep drop by Microsoft weighed on the software sector.

Commodity, Currency Markets

Crude oil futures are rising $0.33 to $73.06 a barrel after inching up $0.11 to $72.73 a barrel on Thursday. Meanwhile, after spiking $51.70 to $2,845.20 an ounce in the previous session, gold futures are edging up $1.10 to $2,846.30 an ounce.

On the currency front, the U.S. dollar is trading at 154.77 yen versus the 154.29 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.0381 compared to yesterday’s $1.0391.

Asia

Most Asian markets rose on Friday following encouraging earnings updates from Apple and Intel. Seoul stocks underperformed amid a sell-off in tech shares on concerns over China’s growing AI capabilities.

The dollar index shined due to risk-off sentiment in the wake of U.S. President Donald Trump’s tariff threats and uncertainty over the Federal Reserve’s rate path.

Gold hovered near record levels ahead of a U.S. Commerce Department report on personal income and spending due later in the day, which includes readings on consumer price inflation preferred by the Federal Reserve.

Oil prices climbed but were set for a small weekly loss as investors assess the impact of Trump’s threats on global growth.

On Thursday, Trump said he would follow through on his threat to impose 25 percent tariffs on imports from Canada and Mexico as early as Saturday, although crude flows may be exempted from the levies. He cited the flow of fentanyl and large trade deficits as among the reasons for the decision.

Trump also reiterated possible levies on China and threatened 100 percent tariffs on BRICS nations over dollar replacement moves.

Markets in mainland China, Hong Kong and Taiwan remained closed for the Lunar New Year holiday.

Japanese markets ended slightly higher as a slew upbeat data kept the prospect of further rate hikes from the Bank of Japan alive.

The Nikkei 225 Index edged up by 0.2 percent to 39,572.49, while the broader Topix Index settled 0.2 percent higher at 2,788.66.

Japanese industrial output unexpectedly grew in December and retail sales hit a six-month high, while the Tokyo consumer price index for January increased to 3.4 percent from 3 percent in the previous month, separate reports revealed. The unemployment rate also unexpectedly dropped to 2.4 percent in January.

The yen held close to over a one-month high following hawkish comments from Bank of Japan Deputy Governor Ryozo Himino.

Seoul stocks ended notably lower as trading resumed after holidays. The Kospi fell 0.8 percent to 2,517.37, dragged down by tech stocks.

SK Hynix, a key supplier to Nvidia Corp, slumped 9.9 percent and Samsung Electronics shed 2.4 percent after DeepSeek’s AI model shook the chip industry.

Australian markets jumped to a record high as a steeper-than-anticipated decline in inflation led markets to expect the Reserve Bank of Australia (RBA) might consider cutting interest rates next month.

The benchmark S&P/ASX 200 Index rose 0.5 percent to 8,532.30, while the broader All Ordinaries Index gained half a percent to close at 8,789.70. Mining and energy stocks surged, while financials ended on a subdued note due to expectations of lower interest rates.

Across the Tasman, New Zealand’s benchmark S&P/NZX-50 Index settled 0.5 percent higher at 12,995.01.

Europe

European stocks hit new record highs on Friday, a day after the European Central Bank delivered a widely expected 25-basis point interest rate cut and guided for a further reduction in March due to concerns about economic growth.

Meanwhile, investors shrugged off data that showed German retail sales unexpectedly contracted on a monthly basis in December.

In addition, there has been a slight increase in the number of unemployed people in Germany, with the unemployment rate rising to 6.0 percent as of December 2024 in comparison to 5.7 percent during the same time in 2023.

Elsewhere, French consumer price increased slightly less than anticipated in January.

The French CAC 40 Index is up by 0.5 percent, the U.K.’s FTSE 100 Index is up by 0.4 percent and the German DAX Index is up by 0.3 percent.

Swiss pharma giant Novartis AG has rallied after posting better-than-expected fourth-quarter sales and raising its dividend.

ATOSS Software SE has also moved sharply higher. The company proposed a higher dividend after reporting an increase in fourth quarter profits.

Smiths Group shares have also soared in London. The engineering firm has announced a number of strategic actions, including a further increase in its share buyback program to enhance returns to shareholders.

Industrial technology group Hexagon has also shown a strong move to the upside after posting a surprise increase in its fourth quarter operating profit.

On the other hand, SKF AB has slumped after its fourth quarter organic sales fell by 3.1 percent, reflecting weaker demand.

U.S. Economic News

The Commerce Department released a closely watched report on Friday showing consumer prices in the U.S. increased in line with economist estimates in the month of December.

The report said the personal consumption expenditures (PCE) price index rose by 0.3 percent in December after inching up by 0.1 percent in November. The increase matched expectations.

The annual rate of growth by the PCE price index accelerated to 2.6 percent in December from 2.4 percent in November, which was also in line with estimates.

Excluding food and energy prices, the core PCE price index crept up by 0.2 percent in December following a 0.1 percent uptick in November. The core price growth also matched expectations.

The annual rate of growth by the core PCE price index in December came in at 2.8 percent, unchanged from the two previous months and in line with estimates.

The inflation readings, which are preferred by the Federal Reserve, were included in a report on personal income and spending.

The Commerce Department said personal income rose by 0.4 percent in December, while personal spending climbed by 0.7 percent.

At 9:45 am ET, MNI Indicators is scheduled to release its report on Chicago-area business activity in the month of January. The Chicago business barometer is expected to rise to 40.0 in January from 36.9 in December, but a reading below 50 would still indicate contraction.