U.S. stock futures were making small moves early Friday, suggesting the equity market could take a breather after the Dow industrials jumped by 396 points on Thursday.
What are the main benchmarks doing?Dow Jones Industrial Average futures YMU8, +0.12% rose by 29 points, or 0.1%, to 25,621, while S&P 500 futures ESU8, +0.03% added 0.80 point, or less than 0.1%, to 2,845.50. Nasdaq-100 futures NQU8, -0.04% shed 5 points, or less than 0.1%, to 7,384.
On Thursday, the Dow DJIA, +1.58% , S&P SPX, +0.79% and Nasdaq Composite COMP, +0.42% COMP, +0.42% closed higher by 1.6%, 0.8% and 0.4%, respectively.
The Dow and S&P are on pace for weekly gains of 1% and 0.3%, respectively, as of Thursday’s close, while the tech-laden Nasdaq Composite is down 0.4% for the week, hampered by week-to-date declines of around 1% to 3% for Microsoft Corp. MSFT, -0.02% , Facebook Inc. FB, -2.69% and Google-parent Alphabet Inc. AAPL, +1.46%
What’s driving markets?Equity markets around the globe have sold off in recent sessions as investors worry that Turkey’s perilous financial condition could hurt other economies.
But U.S. markets on Thursday got a lift from encouraging earnings from Walmart Inc. WMT, +9.33% and Cisco Systems Inc. CSCO, +2.96% , as well as news that the U.S. and China are prepared to resume trade talks next week.
What are strategists saying?“Stock markets had a strong finish yesterday over renewed hopes of a resolution to the trade spat between the U.S. and China,” said David Madden, an analyst at CMC Markets UK, in a note.
“It is worth remembering that this was only the confirmation of talks restarting, and there is no guarantee that any trade deal will be reached. Trade discussions have a history of being protracted, and just because traders want a trade deal doesn’t mean they will get one.”
Which stocks are in focus?Chip company Nvidia Corp. NVDA, -0.63% and chip gear maker Applied Materials Inc. AMAT, -0.17% look on pace for down days after their earnings late yesterday. A decline in cryptocurrency-mining sales appeared to weigh on Nvidia, while a weaker-than-expected guidance seemed to put pressure on Applied Materials shares. Weakness in chipmakers could add pressure to the tech-heavy Nasdaq.
Nordstrom Inc. JWN, +0.81% is on track for an up day after the retailer posted better-than-expected earnings and raised its outlook.
Tractor maker Deere & Co. DE, +1.22% is slated to report its quarterly earnings before the opening bell.
Which economic reports are on tap?Releases on consumer sentiment for August and leading economic indicators for July are due at 10 a.m. Eastern Time, and an advance report on second-quarter services is also slated to hit at that time.
Economists polled by MarketWatch expect a reading of 98.5 for the sentiment index.
Check out: MarketWatch’s Economic Calendar
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