U.S. Stock Futures Higher; Apple, Amazon Surpass Estimates

Pre-open movers

U.S. stock futures traded higher in early pre-market trade on Friday after the Dow Jones jumped more than 300 points in the previous session. Investors are awaiting earnings results from The Procter & Gamble Company PG, Exxon Mobil Corporation XOM, Charter Communications, Inc. CHTR and Sony Group Corporation SONY.

Data on personal income, outlays and employment cost index will be released at 8:30 a.m. ET. The Chicago PMI for July will be released at 9:45 a.m. ET, while the University of Michigan's consumer sentiment index for July is scheduled for release at 10:00 a.m. ET. Data on farm prices for June will be released at 3:00 p.m. ET.

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Futures for the Dow Jones Industrial Average gained 69 points to 32,559.00 while the Standard & Poor’s 500 index futures rose 29.25 points to 4,102.75. Futures for the Nasdaq index jumped 154 points to 12,891.50.

Oil prices traded higher as Brent crude futures rose 2.4% to trade at $104.25 per barrel, while US WTI crude futures rose 2.3% to trade at $98.61 a barrel. The Baker Hughes North American rig count report for the latest week will be released at 1:00 p.m. ET.

The U.S. has the highest number of COVID-19 cases and deaths in the world, with total infections in the country exceeding 92,917,650 with around 1,054,420 deaths. India reported a total of at least 43,979,730 confirmed cases, while Brazil confirmed over 33,752,370 cases.

A Peek Into Global Markets

European markets were higher today. The STOXX Europe 600 Index gained 1%, London’s FTSE 100 rose 0.7% while Spain’s IBEX 35 Index rose 1.2%. The French CAC 40 Index rose 1.4%, while German DAX gained 0.9%.

The Eurozone economy grew 0.7% on quarter during the three months to June, compared to a revised 0.5% expansion in the first quarter, while annual inflation rate in the Eurozone accelerated to a fresh record high of 8.9% in July from 8.6% in June. The annual inflation rate in Italy fell to 7.9% in July from the 36-year high level of 8% recorded in the prior month. The unemployment rate in Germany rose to a nine-month high of 5.4% in July, while the country’s economy stalled in the second quarter. Italy’s gross domestic product grew by 1% quarter-on-quarter during the three months to June. The annual inflation rate in Spain increased to 10.8% in July, while gross domestic product expanded by 1.1% on the quarter during the three months to June. Annual inflation rate in France accelerated to 6.1% in July. The France’s economy expanded 0.5% on quarter in Q2.

Asian markets traded mixed today. Japan’s Nikkei 225 fell 0.05%, while China’s Shanghai Composite fell 0.89% and Hong Kong’s Hang Seng Index fell 2.26%. Australia’s S&P/ASX 200 rose 0.8%, while India’s S&P BSE Sensex surged 1.2%.

Japan's housing starts fell by 2.2% year-over-year in June, while consumer confidence index fell to an 18-month low of 30.2 in July. Retail sales in Japan increased by 1.5% from a year ago in June, while industrial production climbed by 8.9% month-over-month in June. Japan’s unemployment rate came in at 2.6% in June. The final demand producer price index in Australia rose by 1.4% quarter-over-quarter in Q2. Foreign direct investment into China rose 17.4% year-over-year to CNY 723.31 billion during the first half of the year.

Broker Recommendation

JP Morgan downgraded Spirit Airlines, Inc. SAVE from Overweight to Underweight and lowered the price target from $30 to $29.

Spirit Airlines shares fell 2.6% to $25.00 in pre-market trading.

Check out this: U.S. Personal Income Might Rise By This Much In June, Here Are The Major Macro Issues For Friday

Breaking News

• Apple Inc AAPL reported better-than-expected results for its fiscal year third-quarter, helped by strong iPhone and iPad sales. iPhone revenue of $40.67 billion came in better than analysts’ estimates of $39.2 billion.
• Amazon.com, Inc. AMZN reported better-than-expected results for its second quarter. The company said it expects-third quarter net sales to be in a range of $125 billion to $130 billion, up 13% to 17% year-over-year.
• Chevron Corporation CVX reported upbeat earnings for its second quarter.
• Roku Inc ROKU reported weaker-than-expected financial results for its second quarter and withdrew its full-year revenue growth guidance. Roku said it expects third-quarter revenue to increase about 3% year-over-year to $700 million. Total gross profit is expected to be around $325 million.

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