U.S. stock futures edged mostly lower Friday, but Wall Street remained on course for weekly gains ahead of the release of key economic activity data.
By 06:55 ET (11:55 GMT), the Dow Futures contract was down 40 points, or 0.1%, S&P 500 Futures traded 4 points, or 0.1%, lower, while Nasdaq 100 Futures traded largely unchanged.
Losses by market darling Nvidia (NASDAQ: NVDA) weighed on both the S&P 500 and the Nasdaq Composite on Thursday, with the former dropping 0.3% and the latter 0.8%. The Dow Jones Industrial Average was the outperformer, gaining 0.8% – its best day this month.
That said, all three major averages are on pace for weekly gains. The S&P 500 is on track for a gain of 0.8%, the Nasdaq is up 0.2%, and the DJIA is set for a 1.4% rise.
Nvidia loses most valuable crown
Weakness in Nvidia hit sentiment as investors took some profits in the wake of the chipmaker’s extraordinary rise, which had resulted in it briefly becoming the world’s most valuable company earlier this week.
Nvidia relinquished that title back to software giant Microsoft (NASDAQ: MSFT) on Thursday, but the general enthusiasm around the applications of artificial intelligence should mean that underlying demand for the stock remains strong.
Elsewhere, Boeing (NYSE: BOE) will be in the spotlight after Reuters reported that the aircraft manufacturer is on the verge of agreeing to repurchase Spirit Aerosystems, its former subsidiary.
Boeing began negotiations to repurchase one of its major suppliers, which it had spun off in 2005, earlier in this year, but ran into difficulties due to Spirit’s work for Boeing’s main rival Airbus.
The European group had threatened to obstruct any deal that involved Boeing manufacturing parts for its latest models.
Quarterly earnings are also due from used vehicle retailer CarMax.
More clarity needed before cuts – Barkin
The economic data slate centres around manufacturing and services Purchasing Managers’ Index readings for June, for clues of the health of the U.S. economy.
Existing home sales data for May is also slated for release.
A series of Fed officials have expressed caution about expecting rate cuts too soon, seeking more evidence that inflation has been tamed before the central bank would agree to easing monetary policy.
Thomas Barkin, President of the Federal Reserve Bank of Richmond, emphasised the point on Thursday, stressing the need for further clarity on the inflation path before considering lowering interest rates.
“My personal view is let’s get more conviction before moving,” Bakin told reporters following an event in Richmond on Thursday.
Crude heads for weekly gains
Crude prices traded marginally lower Friday but were set to rise for a second week, helped by signs of improving demand in the U.S., the world’s biggest oil consumer.
By 06:05 ET, the U.S. crude futures (WTI) traded 0.1% lower at $81.23 a barrel, while the Brent contract dropped 0.1% to $85.59 per barrel.
Both benchmarks are on course to register gains of over 3% this week, trading close to the highest levels in over seven weeks.
Data released on Thursday by the Energy Information Administration showed a drawdown in U.S. crude stockpiles by 2.5 million barrels in the week ending June 14, more than the 2.2 million-barrel draw expected.
