Stock-index futures pointed lower Friday, with investors awaiting data on July retail sales to gauge consumer spending.
Market participants were also bracing for a round of virtual trade talks between the U.S. and China this weekend against a backdrop of rising tensions between the two countries.
What are major indexes doing?
Futures on the Dow Jones Industrial Average
were down 125 points, or 0.5%, at 27,698, while S&P 500 futures
lost 7.45 points, or 0.2%, to trade at 3,360.25. Nasdaq-100 futures
were positive, however, rising 15.50 points, or 0.1%, to 11,190.75.
The Dow on Thursday
fell 80.12 points, or 0.3%, to end at 27,896.72, while the S&P 500
lost 6.92 points, or 0.2%, to close at 3,373.43, after hitting an intraday peak at 3,387.24, temporarily trading above its Feb. 19 closing record of 3,386.15. The Nasdaq Composite
rose 30.27 points, or 0.3%, higher to close at 11,042.50. The major indexes remain on track for weekly gains.
What’s driving the market?
Analysts said the continued deadlock between congressional Democrats and the White House over a coronavirus aid package could be limiting upside for the market. Negotiations to extend measures, including $600 a week in additional unemployment benefits, that expired at the end of July have remained stalled since the end of last week. President Donald Trump last weekend signed executive orders that would partially extend some measures but those face questions about their legality and logistics.
Meanwhile, virtual talks between U.S. and Chinese officials this weekend are meant to review China’s compliance with the phase one trade deal agreed last year. Jitters surround the talks given growing tensions over China’s actions in Hong Kong and other issues.
For investors “to increase their risk exposures again, US Democrats and Republicans may have to agree over a new fiscal package, and U.S. and Chinese officials may need to provide encouraging remarks over their nations’ trade relationship,” said Charalambos Pissouros, senior market analyst at JFD Group, in a note.
The tone for global equities wasn’t helped by a 1.1% decline in Chinese retail sales in July, versus expectations for a flat reading.
U.S. July retail sales data is due at 8:30 a.m. Eastern. Economists surveyed by MarketWatch were looking for a 2% rise after a 7.5% jump in June. Excluding autos, sales are forecast to rise 1.1% after a 7.3% gain in June.
Second-quarter productivity and unit labor costs figures are also due at 8:30 a.m. Productivity is expected to show a 1.4% increase, while costs are forecast to rise 8.7%.
July industrial production is forecast to show a 2.7% rise, while capacity utilization is expected to rise to 70.5% from 68.6% in June. An initial reading on the University of Michigan;s August consumer sentiment index is due at 10 a.m. Eastern, as is data on June business inventories.
Which companies are in focus?
- Epic Games, the maker of “Fortnite” launched a legal battle with Apple Inc.
after the iPhone maker removed the hit game from its App Store. Epic accused the tech giant of seeking to “unlawfully maintain its monopoly.”
- Shares of Applied Materials Inc.
rose 3.7% in premarket trade after the chip maker supplier late Thursday reported results and an outlook that topped Wall Street forecasts.
- DraftKings Inc.
shares were off 2.1% in premarket trade after reporting a wider-than-expected loss, though revenues topped Wall Street expectations. The stock was already under pressure after Bloomberg reported that the Internal Revenue Service will require fantasy sports companies to pay federal excise taxes on their entry fees.