The major U.S. index futures are pointing to a higher opening on Friday, with sentiment reflecting the newfound optimism that the recovery has taken a firm root and does not face the risk of a reversal. Buoyed by the optimism concerning growth, oil prices are advancing strongly, with supply concerns also adding to the strength. The rally in the oil prices bodes well for the oil space. That said, market movement is likely to be muted due to a lack of clarity on the economic outlook despite recent reassuring data.
On Thursday, U.S. stocks benefited from a report that showed a bigger-than-expected drop in jobless claims, ending the session moderately higher. The major averages opened higher in reaction to the data and were trading mostly sideways until early afternoon trading.
Thereafter, selling pressure set in following reports that Deutsche Bank is contemplating a stock sale, which re-ignited concerns about the liquidity positions of European financial firms. Consequently, the major averages trimmed their gains, although ending higher for a second straight session.
The Dow Industrials added 28.23 points or 0.27% to close at 10,415 and the Nasdaq Composite ended up 7.33 points or 0.33% at 2,236, while the Nasdaq Composite ended 5.31 points or 0.48% higher at 1,104.
Twenty-three of the thirty Dow components closed the session higher, with JP Morgan Chase (JPM), Johnson & Johnson (JNJ), AT&T (T) and American Express (AXP) rising strongly. However, McDonald's (MCD) fell 2.25% and Boeing (BA) slid 1.64%.
Among the sector indexes, the KBW Bank Index added 1.59%, the NYSE Arca Software Index moved up 1.66% and the NYSE Arca Securities Broker/Dealer Index rose 1.15%. However, the NYSE Arca Gold Bugs Index fell 1.57%.
On the economic front, the U.S. trade deficit fell to $42.8 billion in July from $49.8 billion in June. The narrowing of the deficit was aided by a 1.8% increase in exports and a 2.1% decline in imports. Exports received a shot in the arm from a surge in civilian aircraft shipments. The data suggests that trade will be less of a drag on growth in the third quarter.
Meanwhile, jobless claims fell to 451,000 in the week ended September 4th from an upwardly revised deficit of 478,000 for the previous week. Some of the decline was attributed to the distortions arising from the Labor Day holiday last week. Nevertheless, the four-week average fell to 478,000 from the previous week's 487,000. Meanwhile, continuing claims fell by about 2,000 in the week ended August 28th to 4.48 million.
Currency, Commodity Markets
Crude oil futures are rising $1.33 to $75.58 a barrel after moving down $0.42 to $74.25 a barrel on Thursday. The previous session's decline came amid the release of the weekly oil inventory report, which showed that crude oil inventories fell by 1.9 million barrels to 359.9 million barrels in the week ended September 3rd but remained above the upper limit of the average range of the year.
Gasoline stockpiles fell by 0.2 million barrels, although remaining above the upper limit of the average range. Distillate fuel inventories decreased by 0.4 million barrels. Despite the decline, stockpiles were above the upper boundary of the average range. Refinery capacity utilization averaged 88.2% over the four-weeks ended September 3rd compared to 87% in the previous week.
An ounce of gold is currently fetching $1,248.50, down $2.40. In the previous session, the precious metal declined $7.10 to $1,243.80 an ounce.
Among currencies, the U.S. dollar is trading at 84.24 yen compared to the 83.7818 yen it was worth at the close of trading on Thursday. Against the euro, the dollar is currently valued at $1.2718 compared to yesterday's $1.2696.
Asia
The major Asian markets ended Friday's session higher, as optimism that helped U.S. stocks sustain their gains yesterday latched onto the markets in the region. Positive economic data released from the region also helped sentiment.
Japan's Nikkei 225 average opened higher and advanced steadily until late morning. Thereafter, the index pared some of its gains over the remainder of the session, yet closed notably higher. The index ended the session up 140.78 points or 1.55% at 9,239. Most sectors, barring utility and some financial stocks, advanced in the session.
The revised second quarter GDP report released by Japan's Cabinet Office showed that the Japanese economy expanded at an upwardly revised rate of 0.4% compared to the 0.1% growth estimated earlier.
Hong Kong's Hang Seng Index, which braved a mid-session collapse, finished the session up 90.12 points or 0.43% at 21,257. Index heavyweights HSBC Holdings and China Mobile rose in the session, while mainland financial stocks and resource stocks showed some weakness, while property stocks ended on a mixed note.
However, Australia's All Ordinaries, which held above the unchanged line in the morning, retreated thereafter to close down 20.60 points or 0.45% at 4,601. The market witnessed broad based selling pressure.
Europe
The major European markets are trading mixed on Friday, with the French CAC 40 Index and U.K.'s FTSE 100 Index moving up 0.10% and 0.07%, respectively, while the German DAX Index receding is edging up 0.20%.
U.S. Economic Reports
The Commerce Department is due to release its wholesale inventories report at 10 AM ET. Economists expect wholesale inventories at the end of July to show a 0.4% increase.
Wholesale inventories at the end of June rose 0.1% month-over-month, aided by a 1% increase in the inventories of auto components, which lifted durable goods inventories by 0.3%. At the same time, non-durable goods inventories fell 0.2%. Wholesale sales, meanwhile, fell 0.7%
Stocks in Focus
Casey's (CASY) may react to its announcement that it has entered into discussions with 7-Eleven regarding a potential deal. Casey's confirmed that it received an unsolicited preliminary proposal from 7-Eleven, valuing the former at $40 per share in cash after media reported the takeover speculation on Thursday.
Texas Instruments (TXN) could be in focus after it tightened its revenue and earnings guidance for the third quarter. The company said it expects earnings of 66-72 cents per share compared to its earlier outlook of 64-74 cents per share. The company also narrowed its revenue guidance to $3.62 billion to $3.78 billion from its previous guidance of $3.55 billion to $3.85 billion. Analysts estimate earnings of 69 cents per share on revenues of $3.69 billion.
Lattice Semiconductor (LSCC) may also see some activity after it reiterated its third quarter guidance, which calls for flat to 5% sequential revenue growth and gross margin percentage of 59%-61%. The company also said it expects continued profitability in the third quarter. Analysts estimate earnings of 14 cents per share on revenues of $79.50 million, representing 3.11% sequential growth.
Nokia (NOK) could also be in focus after the Finnish telecommunication giant named Microsoft (MSFT) executive Stephen Elop as its president and CEO, effective September 21. The incumbent president and CEO Olli-Pekka Kallasvuo, a veteran with the company, will relinquish office on September 20th. The move is seen as infusion of fresh blood into the company, as it struggles due to competitive threat from smart phone makers.
National Semiconductor (NSM) could see weakness after it said it expects second quarter revenue of $390 million to $415 million, lower than the consensus estimate of $418.64 million. The company also reported first quarter net income of 33 cents per share, higher than 13 cents per share last year. Sales rose 31% to $412 million. Analysts estimated earnings of 35 cents per share on revenues of $414.49 million.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.