U.S. futures posted gains on Friday as investors welcomed a stronger than expected retail sales report. Up 0.6 percent in June as the economy reopened.
Meanwhile, Federal Reserve Chairman Jerome Powell restated his commitment to monetary stimulus, even as the UK, Canada and New Zealand central banks are turning more hawkish.
The Fed’s reassurance is giving investors comfort.
Aside from monetary policy, investors will be looking out for consumer sentiment numbers at 10am Eastern.
Treasury International Capital (TIC) data, which tracks capital moving in and out of the U.S. will be released on Friday.
U.S. stock futures rose in premarket trading, in part due to investor optimism fuelled by resurging consumer demand.
- S&P 500 futures: 4,359.00, +0.16%
- Nasdaq futures: 14,815.75, +0.19%
- DOW futures: 34,910.00, +0.13%
U.S. Dollar and Treasuries
Treasury yields dropped as investors assessed the Fed’s dovish outlook on inflation. Ten-year Treasuries are set to drop for a third week in a row. The dollar strengthened relative to a basket of major currencies.
- U.S. Dollar Index (DXY): 92.71, +0.09%
- 10-year Treasury yield: 1.297%
2-year Treasury yield: 0.230%
Stocks To Watch
Aehr Test Systems, a U.S. company that manufactures burn-in equipment for the semiconductor industry, reported earnings above pre-pandemic levels. The company reported net sales of $7.6 million, up 102% from Q4 2020.
Stocks of an oil exploration company ION Geophysical rose after the company announced its financial outlook for the second quarter of 2021. The company expects revenues of $20 million, a 40% improvement over the second quarter of 2020.
Stocks of a Chinese commodities trading service provider TD Holdings rose after the company announced plans to acquire new energy vehicle manufacturer Jinbochuang and unmanned logistics firm Jinmeike. The acquisition might help TD Holdings manage its global supply chain.
Moderna Global also jumped, nearly 8% in the premarket, on news that is will be added to the S&P 500 index.
- AEHR Aehr Test Systems $3.290, +17.08%, 1.51M (volume)
- GLG TD Holdings $0.9551, +17.64%, 4.48M (volume)
- IO Ion Geophysical $1.900, +24.18%, 3.67M (volume)
Commodities To Watch
Oil was stable in premarket trading. Is still likely to post the biggest weekly decline since March, as uncertainty over the OPEC+ deal subsided. Gold strengthened.
- WTI crude: $71.70, +0.07%
- Brent crude: $73.48, +0.01%
- Gold: $1,819.70, +0.27%
The global crypto market cap decreased by 2.65% in the last 24 hours.
- BTC: $31,183.04, -2.28%
- ETH: $1,863.79, -2.74%
- DOGE: $0.1775, -6.75%