Stock futures experienced a modest uptick early Friday as a series of earnings and economic reports propelled the S&P 500 to a new record close. Specifically, S&P 500 futures increased by 0.24%, while Nasdaq 100 futures rose by 0.23%. Additionally, futures associated with the Dow Jones Industrial Average gained 115 points, equivalent to a 0.26% increase.
In extended trading, shares of the streaming giant Netflix fell over 1% following the release of its latest quarterly earnings. Despite this decline, the company reported a significant earnings and revenue beat for the second quarter and raised its full-year revenue forecast, indicating a strong performance overall.
The moves in the futures market come after a successful day on Wall Street, where the S&P 500 closed 0.5% higher, achieving a new record after reaching an all-time high during the trading session. The Nasdaq Composite also celebrated gains, increasing approximately 0.7% and setting fresh intraday and closing records. Meanwhile, the Dow climbed 0.5%, contributing to a robust market atmosphere.
The broad market, alongside the other two major averages, is currently positioned for a positive week, driven by optimism surrounding the latest earnings results. Notably, shares of PepsiCo and United Airlines surged after both companies exceeded analyst expectations in their earnings reports. This positive sentiment follows solid performances from major banks such as JPMorgan and Goldman Sachs earlier in the week.
The index's upward movement was further supported by encouraging economic data, indicating that the U.S. economy remains resilient. Initial jobless claims for the week ending July 12 showed a decrease from the previous week, while June's retail sales figures surpassed expectations. Keith Lerner, the co-chief investment officer and chief market strategist at Truist, expressed optimism on CNBC's Closing Bell, stating, "I think this market deserves the benefit of the doubt, and what got you here is still the growth sectors." He added that while the economy may be cooling, it is "certainly not collapsing," suggesting that the underlying trend remains positive.
Investors are now looking forward to more earnings reports scheduled for release on Friday, including those from 3M and American Express, both set to be announced before the market opens. On the economic front, the market is also focused on the preliminary reading for July consumer sentiment data. Economists surveyed by Dow Jones anticipate a reading of 61.8, an increase from the previous reading of 60.7.
As of Thursday’s close, the major averages are poised for positive weekly performances, with the S&P 500 up 0.6%, the Dow on track for a 0.3% advance, and the Nasdaq leading the way with a projected 1.5% gain. The overall market sentiment appears optimistic as earnings season continues to unfold.
