Stocks may move to the downside at the start of trading on Friday, although trading activity is likely to be somewhat subdued on the day. The major index futures are currently pointing to a modestly lower open for the markets, with the Dow futures down by 25 points.
While disappointing earnings news out of the retail sector may contribute to some early weakness on Wall Street, traders may be reluctant to make any significant moves amid a lack of major economic news. Uncertainty about the near-term outlook for the markets may also lead to choppy trading.
Nonetheless, shares of Gap Inc. (GAP) are likely to come under pressure in early trading after the apparel retailer reported first quarter earnings that came in slightly above analyst estimates but lowered its full-year guidance.
Gap reported first quarter earnings of $0.40 per share, down from 0.45 per share in the same quarter last year but above analyst estimates for earnings of $0.39 per share. However, the company also said it now expects full year earnings of $1.40 to $1.50 per share, well below estimates for $1.83 per share.
The company attributed the lower guidance to expectations that product costs per unit will be up about 20 percent in the second half of the year, more than outweighing retail price increases.
Fellow apparel retailer Aeropostale (ARO) is also likely to see early weakness after reporting first quarter earnings that came in line with analyst estimates but forecasting second quarter earnings well below current expectations.
Citing business trends and an uncertain retail environment, Aeropostale also said it is neither reiterating nor providing an update to its full year guidance.
In other news out of the retail sector, Liberty Media has offered to acquire bookstore operator Barnes & Noble (BKS) for $17 per share in cash, representing a total value of about $1 billion. The offer represents a 20 percent premium to Barnes & Noble's closing price on Thursday.
Brocade (BRCD) could also be in focus after the networking equipment provider reported second quarter adjusted earnings of $0.13 per share on revenues that rose 9.8 percent to $550 million. Analysts had expected earnings of $0.10 per share on revenues of $550 million.
Stocks moved mostly higher over the course of the trading day on Thursday, although buying interest was somewhat subdued. The markets experienced choppy trading for much of the session as traders digested a mixed batch of economic data.
The major averages posted modest gains on the day, extending the upward move seen in the previous session. The Dow rose by 45.14 points or 0.4 percent to 12,605.32, the Nasdaq climbed up by 8.31 points or 0.3 percent to 2,823.31 and the S&P 500 edged up by 2.92 points or 0.2 percent to 1,343.60.
In overseas trading, stock markets across the Asia-Pacific region turned in another mixed performance on Friday as the Bank of Japan held rates steady. Japan's benchmark Nikkei 225 Index edged down by 0.1 percent, while Hong Kong's Hang Seng Index inched up by 0.2 percent.
The major European markets have also turned mixed over the course of the trading. The U.K.'s FTSE 100 Index is up by 0.2 percent, while the French CAC 40 Index is down by 0.1 percent and the German DAX Index is down by 0.6 percent.
In commodities trading, crude oil futures are rising $0.38 to $98.82 a barrel after sliding $1.66 to $98.44 a barrel on Thursday. Gold futures are advancing $6.80 to $1,499.20 an ounce. In the previous session, the precious metal fell $3.40 to $1,492.40 an ounce.
Among currencies, the U.S. dollar is trading at 81.7235 yen compared to the 81.6077 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.4234 compared to yesterday's $1.430.09.
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May 08, 2026 15:50 ET Manufacturing and services sector survey results and labor market data from main economies were the highlight on the economics news front this week. Factory orders and jobs report dominated the news flow in the U.S. Similarly, industrial production data from German garnered attention in Europe. In Asia, purchasing managers’ survey results from China and the central bank decision from Australia were in focus.