Investing.com – US stock futures pointed slightly lower on Friday, with traders assessing President Donald Trump’s recent statements on interest rates and tariffs. Meanwhile, Boeing (NYSE:BA) says it will report a deeper-than-anticipated loss in the latest quarter as the planemaker faces the impact of worker strikes and charges on some US government projects. Elsewhere, the Bank of Japan announces its third rate hike since it began scaling back its ultra-loose monetary policy in early-2024.
1. Futures edge down
US stock futures hovered below the flatline on Friday, after the benchmark S&P 500 notched a fresh record closing high in the prior session as investors digested comments from President Trump and eyed a raft of corporate earnings.
By 03:31 ET (08:31 GMT), the Dow futures contract had dipped by 21 points or 0.1%, S&P 500 futures had slipped by 7 points or 0.1%, and Nasdaq 100 futures had edged down by 40 points or 0.2%.
The main averages on Wall Street climbedon Thursday, with the S&P 500 in particular logging its first closing peak since December. All three of the indices clocked their fourth consecutive day of gains.
Influencing sentiment were statements made remotely by Trump to the World Economic Forum in Davos, Switzerland, where he called for lower global interest rates. The Federal Reserve is tipped to leave borrowing costs unchanged at its upcoming gathering this month.
Trump also said in an interview with Fox News that he had a friendly conversation with Chinese President Xi Jinping and adopted a hopeful tone towards a potential trade deal with China. Trump has previously threatened to slap harsh tariffs on China, but has stopped short of ordering the measure since returning to the White House earlier this week.
2. Boeing warns of quarterly loss
Boeing has said it will post a bigger-than-anticipated loss of around $4 billion in its most recent quarter, as the embattled jetmaker grappled with a prolonged strike, charges related to US government projects and expenses linked to a slew of job cuts.
In an update released prior to the company’s results next week, Boeing said it would report a loss of $5.46 a share, equating to about $4 billion. Analysts had expected a per-share loss of $1.84, according to LSEG data cited by Reuters.
Boeing has faced both increased scrutiny over its safety record and the fallout from COVID-19 pandemic in recent years, while 2024 began with a dangerous mid-air panel blowout on one of its 737 MAX planes. The incident, coupled with a work stoppage by over 33,000 workers, weighed on the firm last year.
Losses for the first nine months of 2024 amounted to almost $8 billion and, based on Thursday’s announcement, the figure could expand further to nearly $12 billion for the year. CEO Kelly Ortberg flagged in a statement that Boeing has encountered “near-term challenges”, but added that it has taken “important steps” to stabilize the business.
The news comes as a host of firms are reporting their latest earnings, with American Express (NYSE:AXP), Verizon Communications (NYSE:VZ) and NextEra Energy (NYSE:NEE) among those due to publish quarterly numbers on Friday.
3. Trump’s orders creation of new crypto working group
President Trump has ordered the creation of a working group tasked with devising new rules for the cryptocurrency industry and look into possibly establishing a national stockpile of digital tokens.
His actions also included protections for banking services for crypto-related firms, many who have claimed that they have been cut off by some lenders due to directives from US regulators. The creation of a central bank digital currency in the US was also barred.
The orders come as the crypto industry has been hoping for more favorable rules under the Trump administration. Trump has promised to upend a more stringent regulatory environment for digital assets during the tenure of former President Joe Biden, saying he would be a “crypto president”.
Elsewhere, the US securities regulator also scrapped accounting guidance which had increased the costs incurred by some listed companies for safeguarding crypto assets on behalf of third parties — a trend that industry proponents claimed had affected the adoption of digital tokens.
4. BOJ raises rates
The Bank of Japan raised interest rates by 25 basis points, as expected, marking the third hike by the central bank since it began scaling back its ultra-loose monetary policy in early-2024.
Officials also slightly trimmed their growth forecasts for fiscal 2024 and 2025, while raising their outlooks for inflation. The BOJ signaled that if its economic projection were met in the coming months, it could lift borrowing costs further.
“Given that real interest rates are at significantly low levels, if the outlook for economic activity and prices presented in the January Outlook Report will be realized, the Bank will accordingly continue to raise the policy interest rate and adjust the degree of monetary accommodation,” the BOJ said in a statement.
5. Crude on track for weekly losses
Oil prices remained on track for a weekly loss, with sentiment dampened by President Trump’s calls for lower crude prices and higher energy production in the US.
By 03:31 ET, the US crude futures (WTI) were mostly unchanged to $74.62 a barrel, while the Brent contract fell 0.1% to $78.22 a barrel.
Both benchmarks were trading more than 3% lower for the week — their worst performance since November — after Trump signed an executive order calling for increased US oil production, while also scaling back certain climate-related restrictions on the energy sector.
Additionally, Trump, during his speech on Thursday at Davos, said Saudi Arabia and the Organization of the Petroleum Exporting Countries to should bring down oil prices.
Uncertainty has also swirled around his plans for trade tariffs against major economies, which could potentially disrupt global trade and weigh on oil demand.
(Reuters contributed reporting.)
