Benzinga - by Shanthi Rexaline, Benzinga Editor.
Stock futures are pointing upwards on Friday as traders assess earnings reports from Meta Platforms, Inc. (NASDAQ:META), Amazon, Inc. (NASDAQ:AMZN), and Apple, Inc. (NASDAQ:AAPL). Earnings remain mixed, raising concerns about both the economy and corporate profit growth. The non-farm payrolls report for January, anticipated before the market opens, is expected to heavily influence the day’s trading direction. A stronger-than-expected job gains report and/or any spike in wage growth could potentially reignite inflation fears, triggering selling pressure in the market.
Cues From Thursday's Trading:
Optimism preceding tech earnings and some favorable economic data contributed to gains across major averages on Thursday. The indices opened higher and remained range-bound in a sideways move until late-morning trading, with the Dow Industrials briefly dipping below the unchanged line. Subsequently, stocks initiated a rally and concluded near the session highs.
The majority of sectors displayed solid advancements during the session, illustrating the breadth of the rally, although energy stocks experienced some pullback.
US Index Performance On Thursday
| Index | Performance (+/-) | Value |
| Nasdaq Composite | +1.30% | 15,361.64 |
| S&P 500 Index | +1.25% | 4,906.19 |
| Dow Industrials | +0.97% | 38,519.84 |
| Russell 2000 | +1.39% | 1,974.42 |
Analyst Color:
Fund manager Louis Navellier pointed out two factors that reinforce confidence regarding yet another good year for the market. “The major indexes, with the notable exception of the Russell, had a solid January, which is statistically important as over 67% of the time since 1938 the next 11 months were also positive, as occurred last year,” Navellier said.
“We also have the incumbent President running for reelection wind at our back as well, making it likely that we’ll look back on yesterday as a buying opportunity.”
Futures Today:
Futures Performance On Friday
| Futures | Performance (+/-) |
| Nasdaq 100 | +1.00% |
| S&P 500 | +0.61% |
| Dow | +0.06% |
| R2K | -0.08% |
In premarket trading on Friday, the SPDR S&P 500 ETF Trust (NYSE:SPY) rose 0.61% to $492.17 and the Invesco QQQ ETF (NASDAQ:QQQ) rallied 1.07% to $426.38, according to Benzinga Pro data.
Upcoming Economic Data:
The Bureau of Labor Department is scheduled to release its monthly jobs data at 8:30 a.m. ET. Economists, on average, expect non-farm payroll gains of 185,000 for January, down from 216,000 in December. The jobless rate based on the household survey is expected at 3.8%, a 0.1-point uptick from the previous month. The average hourly earnings, an inflation measure, is expected to have increased at a stable rate of 4.1%.
The Commerce Department is due to release its factory goods orders data for December at 10 a.m. ET. Economists, on average, expect a 0.3% month-over-month increase, slower than the 2.6% growth in November.
The University of Michigan will release the final consumer sentiment index for January at 10 a.m. ET. Flash reading released mid-month showed a reading of 78.8, up from 69.7 in December. Traders may also keep an eye on the inflation expectations readings from the report.
See also: Best Futures Trading Software
Stocks In Focus:
- Amazon climbed more than 6% and Meta skyrocketed over 17% in premarket trading following the release of their quarterly results.
- Other stocks moving on earnings are Apple (down over 2.50%), Atlassian Corporation (NASDAQ:TEAM) (down over 7%), Beazer Homes USA, Inc. (NYSE:BZH) (down over 4.50%, Clorox Company (NYSE: CLX) (up about 8.75%), Skechers U.S.A., Inc. (NYSE:SKX) (down over 11%), and Deckers Outdoor Corporation (NASDAQ:DECK) (up over 8%).
- AbbVie, Inc. (NYSE:ABBV), Chevron Corp. (NYSE:CVX), Exxon Mobil Corp. (NYSE:XOM), Bristol-Myers Squibb Co. (NYSE:BMY), Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN), Restaurant Brands International Inc. (NYSE:QSR) and Cigna Group (NYSE:CI) are among the companies due to release their results before the market open.
Crude oil futures rose 0.61% to $74.27 in early European session on Friday, reversing from the 2.68% slump on Thursday.
The benchmark 10-year Treasury note edged up 0.017 percentage points to 3.88% on Friday.
The major global markets fed off the strength relayed by the U.S. market overnight and also reacted to positive U.S. tech earnings. In Asia, most markets, except China and Hong Kong, rallied, while European stocks advanced by late-morning trading.
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