Futures Pointing To Modestly Higher Open On Wall Street

Stocks may move to the upside in early trading on Friday, adding to the gains posted over the two previous sessions. The major index futures are currently pointing to a slightly higher open for the markets, with the S&P 500 futures up by 0.1 percent.

The markets may continue to benefit from yesterday’s upbeat U.S. economic data, which helped ease concerns about the impact of President Donald Trump’s trade wars.

Buying interest may also be generated in reaction to the latest earnings news, with shares of 3M (MMM) surging by 2.7 percent in pre-market trading after the company reported second quarter results that exceeded analyst estimates and raised its full-year sales guidance.

American Express (AXP) may also move to the upside after the company reported second quarter results that beat expectations on both the top and bottom lines.

On the other hand, shares of Netflix (NFLX) are slumping by 2.9 percent in pre-market trading after the streaming giant reported better than expected second quarter results but warned its operating margin in the second half will be lower than the first half.

Housing stocks may see some strength after the Commerce Department released a report showing new residential construction in the U.S. rebounded by more than expected in the month of June.

The Commerce Department said housing starts surged by 4.6 percent to an annual rate of 1.321 million in June after plunging by 9.7 percent to a revised rate of 1.263 million in May.

Economists had expected housing starts to jump by 3.5 percent to an annual rate of 1.300 million from the 1.256 million originally reported for the previous month.

Meanwhile, the report said building permits inched up by 0.2 percent to an annual rate of 1.397 million in June after slumping by 2.0 percent to a revised rate of 1.394 million in May.

Building permits, an indicator of future housing demand, were expected to edge down by 0.2 percent to an annual rate of 1.390 million from the 1.393 million originally reported for the previous month.

After moving modestly higher over the course of Wednesday’s session, stocks saw further upside during trading on Thursday. With the continued upward move, the Nasdaq and the S&P 500 reached new record closing highs.

The major averages ended the session near their best levels of the day. The Nasdaq advanced 153.78 points or 0.7 percent to 20,884.27, the S&P 500 climbed 33.66 points or 0.5 percent to 6,297.36 and the Dow rose 229.71 points or 0.5 percent to 44,484.49.

In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Friday. Japan’s Nikkei 225 Index dipped by 0.2 percent, while China’s Shanghai Composite Index increased by 0.5 percent.

The major European markets have also turned mixed on the day. While the German DAX Index is down by 0.3 percent, the French CAC 40 Index is up by 0.1 percent and the U.K.’s FTSE 100 Index is up by 0.2 percent.

In commodities trading, crude oil futures are jumping $1.12 to $68.66 a barrel after surging $1.16 to $67.54 barrel on Thursday. Meanwhile, after falling $13.80 to $3,345.30 an ounce in the previous session, gold futures are climbing $20 to $3,365.30 an ounce.

On the currency front, the U.S. dollar is trading at 148.41 yen versus the 148.58 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.1650 compared to yesterday’s $1.1596.