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U.S. stock-index futures were slightly higher on Friday, suggesting major indexes could post a positive week, though trading was quiet as investors looked ahead to comments from Federal Reserve Chairman Jerome Powell.
What are the main benchmarks doing?
Futures for the Dow Jones Industrial Average YMU8, +0.19% rose 41 points, or 0.2%, to 25,714. Futures for the S&P 500 ESU8, +0.19% were up 5 points to 2,862.75, a gain of 0.2%. Futures for the Nasdaq-100 NQU8, +0.23% added 15 points, or 0.2%, to 7,439.75.
For the week, the S&P SPX, -0.17% is up 0.2% and on track for its second straight weekly gain, an upswing that took it to a record earlier this week. The Nasdaq COMP, -0.13% is up 0.8% on the week. The Dow DJIA, -0.30% is down less than 0.1% thus far this week, but the move implied by futures suggests it could eke out a modest gain. Should it do so, that would also mark the second straight positive week for the blue-chip average.
On Thursday, major indexes ended slightly lower in a quiet trading session marked by low volume.
What’s driving the market?
The main event on Friday will come when Powell gives a speech at the Fed’s annual meeting in Jackson Hole, Wyo. Although the speech is unlikely to deviate significantly in tone or message from the minutes, it could provide more clarity into what Powell sees as the biggest potential trouble spots facing the economy going forward.
Trading has been quiet of late, with light volumes and slight daily moves, a function of how the second-quarter earnings season is nearly at an end and a week that has been light on economic data. In that environment, Fed policy and political issues have emerged as primary focuses for traders.
Powell’s speech comes two days after the release of minutes from the Fed’s most recent meeting, where the central bank indicated broad-based support for another interest-rate hike in September, with many officials stating that as long as economic data remain strong, “it would likely soon be appropriate to take another step in removing policy accommodation.”
Separately, Kansas City Federal Reserve President Esther George said that she thought two more interest-rate hikes would be appropriate this year and “several more” would likely be needed next year.
Elevated trade tensions between the U.S. and its major trading partners will also remain in view. Reuters on Friday reported that China would continue to retaliate as the U.S. imposes tariffs, although the measures would be as targeted as possible as to avoid harming businesses in China, both domestic and foreign.
This past week was perhaps most notable for the legal issues surrounding President Donald Trump. On Tuesday, the president’s former lawyer Michael Cohen said he violated campaign-finance law at Trump’s direction, while former Trump campaign chairman Paul Manafort was found guilty on eight charges, including tax fraud.
Stocks have mostly shrugged off the political news thus far, but any larger fallout could add to the uncertainty surrounding trade policy and the coming midterm elections. Trump himself said that the market would crash and that “everybody would be very poor” if he were to be impeached.
What’s driving the market?
After the Fed minutes, “traders will be expecting much of the same” from Powell, said David Madden, market analyst at CMC Markets. “The ongoing trade spat with China has the potential to damage the U.S. economy, but we would need to see a prolonged period of tariffs before we see any significant changes to the respective economies.”
What stocks are in focus?
Autodesk Inc. ADSK, -0.46% late Thursday reported second-quarter earnings and revenue that beat expectations.
HP Inc. HPQ, +0.57% late Thursday reported third-quarter revenue that missed expectations, although its adjusted earnings came in above forecasts.
Intuit Inc. INTU, +1.32% late Thursday said that its chief executive officer and its chief technology officer planned to step down. The company named their replacements and also reported adjusted fourth-quarter earnings that beat expectations.
S&P Dow Jones Indices late Thursday said that Arista Networks Inc. ANET, +1.89% would join the S&P 500, replacing GGP Inc. GGP, +0.69% which is being bought by Brookfield Property Partners LP BPY, -2.53%
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