Investing.com - Here are the top five things you need to know in financial markets on Friday, March 1:
1. U.S. ISM manufacturing in focus among delayed data stateside
ISM manufacturing data for February will take the spotlight on Friday amid other normally more sensitive economic reports that will lose some of their potency, having been delayed by the U.S. government shutdown.
The Institute of Supply Management will release its manufacturing purchasing managers’ index (PMI) at 10:00 AM ET (15:00 GMT).
The reading on manufacturing activity is expected to drop to 55.5 as uncertainty over the future path of global trade continue to weigh on factories.
The ISM data will overshadow other reports such as personal income and spending, that includes the Federal Reserve's preferred inflation measure, core personal consumption expenditures (PCE), which excludes food and energy.
The University of Michigan’s consumer sentiment for February will still be closely watched, although it remains a revision of preliminary data that was released on Feb. 15.
2. Global manufacturing activity sets the stage for the U.S.
While waiting for the ISM data, traders digested a wave of global readings of manufacturing data released on Friday.
Taking the lead, China’s factory activity caused a sigh of relief as the sector showed a surprise bounce in February, just a hair away from exiting contraction and easing worries over the outlook for global growth.
Japan also managed to record an unexpected - although slight - improvement in February.
In Europe, manufacturing activity also proved to be better-than-feared, although the region still registered its first contraction in over five years last month as trade war worries, slowing global growth and Britain's imminent departure from the European Union hit demand.
Away from the factories, positive retail sales and unemployment data from Germany, the motor of the euro area's economy, helped lift sentiment.
Brexit uncertainty loomed large over the U.K. PMI: surveyor IHS Markit warned that although the reading it was stronger than German and French ones, it was only a product of frantic stockpiling in case Britain fails to achieve a transition deal with the EU.
3. Stocks move higher on better-than-expected economic data
The string of mostly better-than-expected economic data in Asia and Europe was a sufficient excuse for U.S. futures to turn positive, suggesting an end to three straight days of declines for the S&P 500. The three-day drop was the first in what has been a positive start to the year with the global benchmark up 11% for the first two months of 2019.
At 5:50 AM ET (10:50 GMT), the blue-chip Dow futures were up 162 points, or 0.63%, S&P 500 futures were up 16 points, or 0.59%, while the Nasdaq 100 futures traded up 52 points, or 0.73%.
Elsewhere, European indices registered gains across the board. Germany’s Dax, up 1%, led the pack due to its sensitivity of its export-heavy economy to the Chinese and global growth stories.
Earlier, Asian shares ended sharply higher as data eased economic fears. China’s Shanghai Composite led gains as index publisher MSCI announced it would raise the weight of Chinese mainland shares in its global benchmarks.
4. Oil shows mixed signs with U.S. output in focus
Crude prices showed mixed signs on Friday as investors celebrated the Chinese economic data, raising hopes that the world’s number one importer of oil is not in as dire straits as had been feared.
Although OPEC-led production cuts have translated into a rally of more than 20% this year, traders are keeping a close eye on rising U.S. production, which could generate a fresh glut on a global level if demand fails to keep pace.
In that light, investors will pay close attention as Baker Hughes releases its weekly rig count data, an early indicator of future output, at 1:00 PM ET (18:00 GMT).
5. Foot Locker (NYSE:FL) Set to Report
Foot Locker (NYSE:FL) continues the retail earnings season tomorrow, reporting ahead of trading.
On average, analysts expect that the athletic wear retail chain to report fiscal fourth-quarter earnings of $1.40 per share on sales of about $2.2 billion.
On Tuesday, Pivotal Research Group downgraded the stock to hold from buy with a price target of $64.
Pivotal is expecting solid numbers when Foot Locker issues results, but says that fiscal first-quarter same-store sales numbers could be a problem due to delayed and reduced tax refunds crimping spending, Briefing.com reported.