U.S. Stock Futures Edge Higher
U.S. stock index futures are trending upward this Friday as investors analyze the week’s key economic indicators, earnings reports, and potential policy moves under the incoming Trump administration. By 03:37 ET, Dow futures had risen 77 points (0.2%), S&P 500 futures gained 10 points (0.2%), and Nasdaq 100 futures edged up by 33 points (0.2%).
This movement follows a mixed trading day on Thursday, where sentiment was affected by robust consumer spending data and a strong labor market, signaling a potentially slower pace of interest rate cuts by the Federal Reserve. However, Fed Governor Christopher Waller hinted at a possible rate reduction soon, citing easing price pressures.
Bond yields continued their decline from earlier in the week, driven by lower-than-expected core inflation.
Earnings Spotlight: State Street and Citizens Financial Group
Today’s earnings calendar features reports from State Street (NYSE:STT) and Citizens Financial Group (NYSE:CFG). The banking sector has seen strong results this week, with Morgan Stanley (NYSE:MS) and Bank of America (NYSE:BAC) exceeding expectations on Thursday. Earlier in the week, JPMorgan Chase (NYSE:JPM) and Goldman Sachs (NYSE:GS) also posted solid numbers.
Despite the positive results, some banking stocks faced profit-taking on Thursday, as analysts noted that elevated expectations set by earlier earnings could create challenges for other firms.
Nintendo Shares Dip After Switch 2 Reveal
Nintendo’s (NYSE:SWCH) stock slid following the unveiling of its Switch 2 console. The updated version retains the hybrid console-portable design but offers few surprises beyond what industry leaks had already predicted. While the original Switch has been a major success, selling nearly 150 million units since 2017, declining sales in recent quarters have weighed on Nintendo’s performance.
China’s Economy Hits Growth Target
China’s GDP grew by 5.4% in Q4 2024, surpassing expectations of 5% and bringing the annual growth rate to 5%, matching the government’s target. This comes after a series of stimulus measures to support manufacturing, curb government debt, and boost the property market. Analysts now expect more aggressive fiscal policies to address potential trade tensions with the U.S.
Oil Prices Climb
Oil prices continue to rise, heading for a fourth consecutive weekly gain. U.S. crude futures (WTI) are up 0.7% to $78.36 per barrel, while Brent crude gained 0.5% to $81.67. Recent sanctions on Russian oil producers have supported prices, along with expectations of tighter supply.
Analyst Updates
- Amazon.com (NASDAQ:AMZN): BMO Capital raised its price target to $265, citing accelerating AWS growth and adoption of same-day/next-day delivery services.
- Apple (NASDAQ:AAPL): Evercore ISI added Apple to its “Tactical Outperform” list, expecting strength in emerging markets, services, and wearables.
Social Media and TikTok Ban
The potential U.S. TikTok ban continues to shake up the social media landscape. Companies like Meta (NASDAQ:META) and Alphabet (NASDAQ:GOOGL) are preparing to capture displaced TikTok users, while the Biden administration explores options to implement the law without shutting TikTok down completely.
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