Investing.com – US stock futures edge higher prior to the final trading day of the week on Wall Street, with traders pouring through recent economic data, corporate earnings, and possible policy shifts during the incoming Trump administration. State Street (NYSE:STT) and Citizens Financial (NYSE:CFG) Group are due to report their quarterly returns, while Nintendo shares slip after the video game giant unveils the latest version of its Switch console. Elsewhere, China’s economic growth matches a target previously laid out by government officials.
1. Futures higher
US stock futures pointed higher on Friday as investors assessed a week of key economic indicators and corporate earnings and looked ahead to the inauguration of President-elect Donald Trump next week.
By 03:37 ET (08:37 GMT), the Dow futures contract had added 77 points or 0.2%, S&P 500 futures had gained 10 points or 0.2%, and Nasdaq 100 futures had inched up by 33 points or 0.2%.
The main averages ended lower on Thursday, retreating somewhat from a jump in the preceding session, with sentiment impacted by data showing an increase in consumer spending activity and a labor market on solid ground. The numbers, along with worries around President-elect Trump’s sweeping import tariff plans, bolstered the case for the Federal Reserve to bring down interest rates at a slower pace this year.
However, traders still took note of comments from Fed Governor Christopher Waller, who told CNBC that the Fed may reduce borrowing costs sooner rather than later because price pressures are likely to continue to ease.
US government bond yields ticked lower, extending a decline sparked earlier in the week by a cooler-than-anticipated core inflation reading. Yields typically move inversely to prices.
2. State Street, Citizens Financial Group to report
Wall Street earnings on Friday will feature State Street (NYSE:STT) and Citizens Financial Group (NYSE:CFG), following a week of crucial bank earnings that have been boosted by a wave of dealmaking.
Spurred on by signs of a resilient US economy, Fed rate drawdowns and hopes for a looser regulatory environment under the incoming Trump administration, some of the largest lenders in the US have reported robust quarterly returns.
On Thursday, Morgan Stanley (NYSE:MS) unveiled an uptick in earnings in the fourth quarter, while Bank of America’s income for the period topped estimates. The figures came after major industry players like JPMorgan Chase (NYSE:JPM) and Goldman Sachs posted solid numbers on Wednesday.
Analysts at Vital Knowledge noted that some bank stocks witnessed a round of profit-taking by investors on Thursday, “not so much because earnings […] were bad, but instead due to the fact Wednesday’s results, which were so strong, raised the bar for everyone.”
3. Nintendo shares slide after Switch (NYSE:SWCH) 2 announcement
Shares of Japanese video gaming titan Nintendo fell on Friday as investors appeared to be little enthused by the long-awaited reveal of the successor to its Switch console.
Nintendo unveiled the Switch 2 in a two-minute video on Thursday, but offered few details on specifications, stating that more will be announced in April.
The video showed that the Switch 2 will sport the same portable-home console hybrid form factor as its predecessor, with what appeared to be a bigger screen, magnetically-attached controllers and slight tweaks to its overall design.
But few surprises were yielded beyond what a barrage of leaks and insider comments had already noted about the product.
The Switch is one of Nintendo’s best-selling consoles, having sold nearly 150 million units since its release in 2017, driven in large part by the company’s strong library of first-party games. However, sluggish sales of the aging console have weighed on Nintendo’s earnings in recent quarters, with the firm also cutting its annual profit and sales forecasts.
4. China’s annual economic growth meets government target
China’s economy grew more than expected in the fourth quarter of 2024, official data showed on Friday, allowing the country to meet Beijing’s annual growth target.
Gross domestic product grew 5.4% year-on-year in the three months to December, more than expectations of 5% and picking up sharply from the 4.6% seen in the prior quarter. GDP expanded by 1.6% quarter-on-quarter, in line with expectations.
This pushed annual GDP up to 5%, according to figures from the National Bureau of Statistics, matching the Chinese government’s growth target of around 5%. Analysts had anticipated a reading of 4.9%.
Friday’s figures came after a bout of recent stimulus measures from Beijing, aimed largely at supporting local manufacturing, curbing state government debt, and boosting an ailing property market. Officials are now expected to dole out even more aggressive stimulus in the face of possible trade tensions with the US as President-elect Trump returns to the White House.
5. Oil rises
Oil prices rose Friday, heading towards a fourth consecutive weekly gain, with the latest US sanctions on the Russian crude trade continuing to offer support.
By 03:38 ET, the US crude futures (WTI) gained 0.7% to $78.36 a barrel, while the Brent contract rose 0.5% to $81.67 a barrel. Both contracts have gained roughly 3% so far this week.
The Biden administration last week announced widening sanctions targeting Russian oil producers and tankers, leading some observers to predict possible supply disruptions and price increases.
