As the trading week draws to a close, US equity futures are signaling a positive trend prior to Friday's market opening. Investors eagerly anticipate the release of the personal income and outlays report for June, along with the final corporate earnings results for the week, which are expected to influence market sentiment significantly. In the premarket activity, the S&P 500 futures have increased by 0.7%, the Dow Jones Industrial Average has seen a rise of 0.5%, and the Nasdaq has jumped by 1%, indicating a robust opening on the horizon.
This upward momentum follows a trend seen in Asian exchanges, which predominantly reported gains, complemented by positive indications from European bourses tracking in the green. Economic analysts are looking forward to the personal income report, which is set for release at 8:30 am ET. This report shall encompass the core price index for personal consumption expenditures—the metric preferred by the Federal Reserve for gauging inflation.
Friday's economic calendar is also significant as it includes the final University of Michigan consumer sentiment report for this month, scheduled for 10 am, followed by the weekly Baker Hughes domestic oil-and-gas rig count at 1 pm. In corporate news, Booz Allen Hamilton reported a diluted earnings per share of $1.38 for the fiscal first quarter, a decline from last year’s $1.47.
Meanwhile, Colgate-Palmolive reported second-quarter adjusted earnings per share (EPS) of $0.91, up from $0.77 in the same quarter of the previous year. Several major companies are expected to disclose their financial results prior to the market opening, including Bristol-Myers Squibb, Aon, 3M, Charter Communications, Centene, First Hawaiian, and Newell Brands, each contributing to the narrative of the market's health as they release their latest figures. However, not all corporate news has been positive.
Shares of DexCom plummeted by 35% in premarket trading, following the diabetes device manufacturer’s announcement of a reduced full-year revenue outlook. On the other hand, Lululemon Athletica saw a slight recovery, edging up by 0.9% after experiencing a significant drop of 9.1% in the previous trading session.
In a brighter turn, Deckers Outdoor surged by 11%, boosted by an upward revision of its earnings guidance for fiscal 2025. Before the ringing of the opening bell, bitcoin has witnessed a considerable increase of 3.9%, reaching $67,297. In commodities, West Texas Intermediate crude oil has dipped by 0.4%, priced at $77.99 per barrel.
Yields on 10-year Treasuries have decreased by 1.1 basis points to 4.24%, while gold prices have risen by 0.8%, settling at $2,373 per ounce. As the markets prepare for the day, all eyes will be on these economic indicators and corporate earnings, shaping the direction of investment strategies moving forward..