US Stock Futures Rise as Tech Earnings Boost Investor Sentiment
US stock futures edged higher on Friday as investors digested the latest earnings reports from major technology companies and awaited the release of the highly anticipated monthly jobs report. By early morning trading, Dow Futures were up 0.1%, S&P 500 Futures were 0.3% higher, and Nasdaq 100 Futures climbed 0.5%.
After a month of strong gains in July, Wall Street indices closed lower on Thursday, taking a breather in response to surging bond yields. However, the tech sector, which has been leading the way in terms of artificial intelligence advancements and hopes for a dovish stance from the Federal Reserve, remained resilient.
The focus on Friday will be on the monthly official jobs report, set to be released at 08:30 ET. The report is expected to show that 200,000 new positions were created in July, indicating a slight slowdown compared to the previous month. Average hourly earnings are forecasted to slow slightly, while the unemployment rate is anticipated to remain unchanged at 3.6%.
In addition to the jobs report, quarterly earnings reports continue to emerge, though the peak has passed. As of now, approximately 79% of S&P 500 companies have announced their results, with nearly 80% surpassing Wall Street expectations, according to FactSet.
Investor attention is particularly drawn to the earnings reports of tech giants Apple and Amazon, both of which were released after market close on Thursday. Apple reported higher-than-anticipated quarterly income, primarily due to strong services demand, although revenue declined due to decreased consumer spending on their products. Amazon’s cloud computing division also reported slower growth than expected in the second quarter, raising hopes of a turnaround in the near future.
Aside from earnings reports, developments in the oil market are also influencing investor sentiment. Oil prices rose on Friday, heading for the sixth consecutive week of gains. This upward trend can be attributed to output cuts by major producers Saudi Arabia and Russia, which have led to tightened global supplies. Saudi Arabia announced an extension of their voluntary production cut until the end of September, while Russia plans to reduce its oil exports next month.
Overall, despite some breather in stock performance, investor sentiment remains cautious yet optimistic. The eagerly awaited monthly jobs report, along with the latest earnings releases, will provide further insights into the strength of the US labor market and the growth trajectory of major technology companies. Furthermore, developments in the oil market are also likely to impact market sentiment as investors assess the implications of reduced supply.
