Stock futures stumble after inflation prints in line

U.S. stocks faltered at the open on Friday, with some signs suggesting the indexes could end the week on an upbeat note as technology stocks headed for modest gains.

S&P 500 (^GSPC) added 0.2%, while the Dow Jones Industrial Average (^DJI) was slightly modified. The tech-heavy Nasdaq Composite (^IXIC) rose by approximately 0.4%.

The yield on the benchmark 10-year U.S. Treasury note rose to 3.437 percent from 3.397 percent on Thursday. The dollar index added 0.1% to trade at $101.94 on Friday morning.

Stock up extended a losing streak Thursday as investors analyzed economic data and corporate earnings reports, clouding their views on the health of the U.S. economy.

Despite concerns about the economy, markets have been fairly resilient and have mostly risen this year, according to the US market intelligence team at JP Morgan. However, the team does not believe there is currently a recession in the equity markets.

“We disagree with the argument that because recession is the consensus,” the team wrote, “the market and economic performance must be better.”

The S&P 500 is expected to report a 3.9% annual profit decline for the fourth quarter, according to data from FactSet Research. This would mark the first annual decline in earnings reported by the index since 2020, if realized.

Wall Street navigated another round of data and Fedspeak on Thursday. Federal Reserve Bank of New York President John Williams said Thursday the central bank has more interest rate hikes “to bring inflation down to our target of 2% on a sustainable basis”.

Federal Reserve Vice Chairman Lyle Brainard and Federal Reserve Bank of Boston President Susan Collins made similar remarks Thursday ahead of the Fed’s next monetary policy meeting, which begins Jan. 31.

Philadelphia Federal Reserve President Patrick Harker reiterated his sentiment Friday morning to move to 25 basis points raising interest rates.

In corporate news, Netflix (NFLX) CEO Reed Hastings announced Thursday that he is going down. After two decades, he leaves the streaming platform in the hands of co-CEO Ted Sarandos and COO Greg Peters after reporting a strong finish to 2022.

POLAND – 2023/01/19: In this photo illustration, the Netflix logo is displayed on a smartphone with stock market rates in the background. (Photo illustration by Omar Marquez/SOPA Images/LightRocket via Getty Images)

And the era of password sharing will soon be over. The streaming giant will enforce password sharing rules “more broadly” by the end of the first quarter of 2023, Netflix announced in its income statement in Thursday. Shares jumped nearly 6% Friday morning.

Google parent Alphabet Inc. (GOOG, GOOGLE) said it was lays off 12,000 workers, or more than 6% of its global workforce, becoming the latest tech company to cut staff after expanding rapidly during the pandemic. Shares of Google parent Alphabet Inc. added 3% at the open.

In commodity markets, oil prices rose. Brent crude, the global benchmark, rose nearly 0.6 percent to $86.64 a barrel, and WTI, the U.S. benchmark, added 0.5 percent to around $80.72. Both could end the week with fresh gains, led by optimism about a recovery in demand in China.

Meanwhile, on the Genesis Global Capital crypto market filed for bankruptcy defense late Thursday in the U.S. Bankruptcy Court for the Southern District of New York. The move comes after the company failed to raise money for its troubled credit unit and cut 30% of staff in a new round of layoffs in early January.

Danny Romero is a reporter for Yahoo Finance. Follow her on Twitter @daniromerotv

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