OPENING CALL
Stock futures ticked higher early on Friday, as investors awaited a new readout of the Federal Reserve's preferred inflation gauge.
The personal consumption expenditures index for July is due at 0830 a.m. ET.
Economists expect monthly increases of 0.2% on both a headline and core basis, when volatile food and energy prices are excluded. Core PCE is seen rising 2.7% from a year earlier.
Premarket Movers
Autodesk raised guidance for the fiscal year following better-than-expected second-quarter adjusted profit and revenue. Shares gained 4.1%.
Dell Technologies reported second-quarter adjusted earnings of $1.89 a share, beating consensus of $1.70, and revenue at the maker of personal computers rose 9% from a year earlier to $25 billion and also topped forecasts. The stock rose 6.5%.
Elastic sank 27% after the company issued a revenue forecast for its fiscal second quarter that missed expectations. Elastic expects revenue in the period of $353 million to $355 million, below estimates of $361 million.
Lululemon rose more than 4%. The company reported earnings per share that topped analysts' estimates, while international sales soared.
Marvell Technology said it expects fiscal third-quarter revenue of $1.45 billion at the midpoint, higher than analysts' estimates of $1.41 billion, and adjusted earnings of 40 cents a share at the midpoint, higher than consensus of 38 cents. Shares rose 9%.
MongoDB rose 14% after the company boosted its forecast for the third quarter and fiscal year following better-than-expected second-quarter adjusted earnings.
Nvidia was up 1.6%. The shares have fallen 8.35% over the past two sessions, their worst two-day stretch since the two days ended July 25.
Second-quarter earnings and revenue at Ulta Beauty were lower than expected and same-store sales fell 1.2%, leading the cosmetics company to reduce its fiscal-year outlook. The stock was falling 6.7%.
Watch For:
Personal Income and Outlays for July; Chicago Business Barometer - ISM-Chicago Business Survey - Chicago PMI for August; University of Michigan Final Consumer Survey for August; Canada GDP for June
Today's Top Headlines/Must Reads:
- Threat of Strike This Fall Hangs Over U.S. Ports
- Companies Grapple With Expanding Cyber Rules
- Nvidia's Future Relies on Chips That Push Technology's Limits
MARKET WRAPS
Forex:
The dollar traded steady after rising on Thursday following better-than-expected U.S. economic growth data, as investors await the Fed's preferred measure of inflation.
A stronger-than-expected read could support the dollar, Swissquote Bank said, although Fed "doves," who favor interest rate cuts, are more interested in jobs data than inflation figures. What would "really change the game" is strong jobs data next week, it said.
The euro has limited room to fall against the dollar, ING said.
"Year-end pricing for ECB easing is at 70 basis points, and markets may be waiting for the eurozone-wide CPI figure published today to make the push that to the full 75bp over three meetings," ING said before the release.
However, that compares to Fed pricing of 100bps cuts this year. EUR/USD could remain below 1.1100 into the weekend but is unlikely to break below 1.1000 and should trade between 1.1050-1.1500 early next week, ING added.
Bonds:
The 10-year Treasury yield may still fall if key resistance at 4.137% on the weekly chart isn't breached, UOB Global Economics & Markets Research said.
The 4.137% level is significant for two reasons--it represents the bottom of weekly Ichimoku cloud and it's where 21-week exponential moving average seems poised to cross below 55-week EMA, it said.
The 10-year yield had plunged to a low of 3.667%, but the decline appears to have paused during past couple of weeks, UOB said. On downside, the support to watch below 3.667% is 3.400%.
Energy:
Oil prices were on track for weekly gains as robust U.S. economic data eased concerns over weak demand and risks of larger supply disruptions in Libya increased.
Libya suspended exports from five eastern ports, according to a Bloomberg report, while the country's output dropped further.
Still, worries over the global demand outlook amid a smaller-than-expected draw in U.S. crude inventories and tepid demand in China continue to weigh on prices.
"The market is concerned about the medium-term outlook, with oil balances for 2025 looking weak," ANZ Research said.
OPEC+
Weakening oil prices are jeopardizing OPEC+'s plans to gradually reintroduce some barrels into the market as the group seeks to maintain a higher price floor.
According to BMI, increased OPEC+ production could exacerbate a recent decline in global prices, damaging market sentiment.
Metals:
Gold futures slipped but kept close to the all-time high set on Aug. 20, and BMI expects prices to remain elevated as geopolitical uncertainties continue to benefit the bullion, while Fed rate cuts and a weaker U.S. dollar lend further support.
Meanwhile, base metals rose , rebounding across the sector after a sell-off prompted by a stronger dollar weighed on investor appetite.
Aluminum had led metals lower as concerns about the strength of China's demand recovery lingered, ANZ Research said, while ample supply of the metal added to the investor concerns.
Comex gold futures have resumed their uptrend on the daily chart, rising $22.50 to close at $2,560.30/oz on Thursday, RHB Retail Research said.
If gold stages a breakout and sustains gains above $2,600/oz, it may extend its uptrend toward subsequent resistance at $2,775/oz, it added.
TODAY'S TOP HEADLINES
Amazon Loses Bid to Overturn Union Loss
A federal labor agency has denied Amazon.com's request to overturn the results of a 2022 election in which workers voted to unionize a Staten Island, N.Y., warehouse.
A three-member panel from the National Labor Relations Board denied Amazon's appeal, according to an NLRB filing Thursday. Amazon had appealed an earlier decision by a federal labor official that also denied the company's request to overturn the election.
Tyson Foods Replaces John R. Tyson as CFO
John R. Tyson is out as chief financial officer at Tyson Foods.
The company said Thursday that Tyson, the son of its chairman, will step down from the role but remain at the company on health-related leave.
Tokyo Inflation, Output Recovery Suggest BOJ Will Raise Rates Again
TOKYO-Consumer inflation in the Tokyo metropolitan area rose at a faster-than-expected pace in August, stoking speculation that the Bank of Japan will soon raise interest rates again.
Tokyo's core consumer-price index, excluding volatile fresh food, increased by 2.4% on-year in August, partly due to the phasing out of energy subsidies. That compared with a 2.2% rise in July, government data showed Friday.
Humanitarian Groups Sending Gaza Aid Face Banking Challenges
Some humanitarian organizations in Europe and the U.S. trying to combat a hunger crisis in Gaza say they have had their bank accounts closed without reasons being provided and their transactions frozen since the Oct. 7 Hamas-led attacks on Israel.
This move by banks to derisk stems from challenges many of them encounter in regions governed by sanctioned groups that allegedly have a history of diverting aid, as it can be difficult to ascertain the ultimate beneficiaries of transactions. And normal methods banks use to investigate transactions might not be available in active war zones.
Russia's Military Fears for Its Secrets After Telegram Founder's Arrest
Russian authorities have reacted with unusual fury to the arrest of Telegram founder Pavel Durov by French authorities.
Telegram is more than a mere social-media app to Moscow. Russian soldiers and spies depend on it for battlefield communications, including the guidance of artillery, the coordination of movements and intelligence gathering.
A Key Western Ally Is Buckling Under Russian Pressure
TKVIAVI, Georgia-Georgian defenses collapsed within days of Russia's invasion in 2008. Moscow-backed militias killed and rampaged in the countryside as Russian tanks roared unopposed on the highway to capital Tbilisi.
A pharmacist from this leafy village, Fatima Papiashvili, and her daughter Diana, aged nine at the time, witnessed the murders of their neighbors, and were fortunate to escape to safety with the help of a Wall Street Journal reporter.
Write to ina.kreutz@wsj.com
TODAY IN CANADA
Earnings:
Candn Wstern Bank 3Q
Laurentian Bank of Can 3Q
Economic Indicators (ET):
0830 Jun GDP
0830 2Q Quarterly GDP
Stocks to Watch:
Hudbay Minerals Receives Aquifer Protection Permit for Copper World Project
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Uranium Royalty Announces Renewed At-the-Market Equity Program
Expected Major Events for Friday
04:30/JPN: Jul Preliminary Report on Petroleum Statistics
05:00/JPN: Jul Housing Starts
05:00/JPN: Jul Construction Orders
05:30/FRA: 2Q Job creation
06:00/GER: May Retail Trade
06:00/GER: Jul Foreign trade price indices
06:00/UK: Aug Nationwide House Price Index
06:45/FRA: Jul Household consumption expenditure in manufactured goods
06:45/FRA: 2Q GDP - detailed figures
06:45/FRA: Jul PPI
06:45/FRA: Aug Provisional CPI
07:55/GER: Aug Labour market statistics (incl unemployment)
08:00/ITA: Jul Unemployment
08:30/UK: Jul Bank of England effective interest rates
08:30/UK: Jul Monetary & Financial Statistics
08:30/UK: Jul Money and Credit - Lending to Individuals, Lending to Businesses, Broad Money and Credit
09:00/ITA: Aug Cities CPI
09:00/ITA: Aug Provisional CPI
10:00/ITA: Aug Consumer Confidence Survey
10:00/ITA: Aug Business Confidence Survey
12:30/US: Jul Personal Income and Outlays
12:30/CAN: Jun GDP
12:30/CAN: 2Q Quarterly GDP
13:45/US: Aug Chicago Business Barometer - ISM-Chicago Business Survey - Chicago PMI
14:00/US: Aug University of Michigan Survey of Consumers - final
19:00/US: Jul Agricultural Prices
(MORE TO FOLLOW) Dow Jones Newswires
August 30, 2024 06:18 ET (10:18 GMT)
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