U.S. stock-index futures presented a mixed picture early Friday, with technology shares buoyed by a robust outlook from Intel, while energy price concerns weighed on the Dow. As of 3:21 AM ET, Dow futures declined 58 points, S&P 500 futures added 10 points, and Nasdaq 100 futures surged 172 points, according to Investing.com.
The divergence underscores Wall Street's challenge as it attempts to sustain an earnings-driven rally amid rising energy costs that threaten to reignite inflation fears. On Thursday, the Dow slipped 0.36%, the S&P 500 fell 0.41%, and the Nasdaq dropped 0.89%. Of the 123 S&P 500 companies that had reported by Thursday morning, 82.1% exceeded analyst expectations, noted Tajinder Dhillon of LSEG.
Oil remains a critical wild card. Brent crude pushed past $105 a barrel, with U.S. crude near $96, as disruptions in the Strait of Hormuz persisted. Major central banks, including the Federal Reserve, are scheduled for policy meetings next week. “A ceasefire is a funny term,” said Vishnu Varathan, Mizuho’s head of macro strategy for APAC, highlighting ongoing tensions and the blockade.
Thursday proved harsh for software stocks. IBM and ServiceNow’s results sent the sector tumbling, with the S&P 500 software and services index falling 5.09%—its steepest drop since January 29. In contrast, Texas Instruments soared 19.43% after surprising with a stronger outlook, marking its largest gain since October 2000.
Intel captured premarket attention. The chipmaker projected second-quarter revenue of $13.8 billion to $14.8 billion, surpassing the $13.07 billion consensus estimate from LSEG. Shares jumped 19% in after-hours trading. “Not just our wishful thinking,” CEO Lip-Bu Tan told analysts regarding a rebound in server CPU demand.
The Intel news highlights a split within the chip sector. Intel’s data center and AI divisions exceeded revenue forecasts, but competition remains fierce from Nvidia, Advanced Micro Devices, and Arm. Friday’s session may serve more as a referendum on AI hardware’s ability to offset a weaker tone in software rather than a broad tech rally.
Additional earnings are due before the bell from Procter & Gamble, Charter Communications, HCA, Norfolk Southern, and SLB, offering insights across consumer staples, media, hospitals, rail freight, and oilfield services.
On the economic calendar, the University of Michigan’s final April consumer sentiment index is due at 10:00 AM ET. The preliminary reading came in at 47.6, down from March’s 53.3. Year-ahead inflation expectations rose to 4.8% from 3.8%. Survey director Joanne Hsu cited softer sentiment since the Iran conflict began and ongoing price concerns.
Two data releases were postponed: the Census Bureau delayed March new residential sales to May 5, while March durable goods figures are still scheduled for April 29 at 8:30 AM EDT.
Friday’s setup is straightforward: any major oil news could easily overshadow Intel’s move. Another Hormuz scare or a spike in gas prices would pressure consumer stocks and keep yields elevated. However, a stronger Michigan number could boost cyclicals, even as it gives the Fed another reason to delay rate cuts.
Leadership appears thin. Jay Hatfield, CEO and CIO at Infrastructure Capital Advisors, likened Thursday’s action to “playing musical chairs” between earnings and war news—a fitting description for a premarket where a single chipmaker shoulders much of the load.
