Wall Street Might Open Broadly Lower

Earnings reports, as well as reactions to geopolitical tensions, might be the highlights on Friday.

Capital One, Mattel, Snap, and Tenet Healthcare have scheduled their quarterly results on the day.

The European Central Bank’s key interest rate hike by half a percentage point will be effective by July 27. The rate increase in 11 years is an effort to keep inflation under control. The market has not shown any excitement on the announcement and Euro fell on the day. Investors are keenly observing the inflation situation in Europe as well as other parts of the globe.

Increasing oil prices, and tight supply might impact investor sentiments on Friday. They are keen on political situation in the U.K., Italy and Sri Lanka as well as the ongoing war between Russia and Ukraine.

Initial trends from the U.S. Futures Index suggest that Wall Street might open broadly lower.

As of 7.40 am ET, the Dow futures were gaining 57.00 points, the S&P 500 futures were sliding 5.50 points and the Nasdaq 100 futures were down 35.25 points.

The U.S. major averages reached new highs for the session on Thursday. The Dow climbed 162.06 points or 0.5 percent to 32,036.90, the Nasdaq surged 161.96 points or 1.4 percent to 12,059.61 and the S&P 500 jumped 39.05 points or 1 percent to 3,998.95.

On the economic front, the flash Composite Purchasing Managers’ Index or PMI for July will be released at 9.45 am ET. The consensus for Manufacturing Index is 51.8 and the consensus for Services Index is 52.3.

The Baker Hughes Rig Count for the week will be published at 1.00 pm ET. In the prior week, the North America Rig Count was 947. The U.S. Rig Count was 756.

In the corporate sector, tech-giant Amazon signed an agreement with One Medical, a primary healthcare company, for $3.9 billion, spreading out further into the healthcare sector.

Asian stocks ended mostly higher on Friday. Chinese stocks ended almost unchanged. Shanghai SE Composite Index lost 0.06 percent or 2.03 points to 3,269.97. Hong Kong’s Hang Send index closed 0.17 percent higher at 20,609.14.

Japanese shares gained at the closing. The Nikkei average rose 0.40 percent or 111.66 points to 27,914.66. The broader Topix index edged up 0.28 percent to 1,955.97.

Australian markets finished marginally lower. ASX All Ordinaries finished at 7,011.80, down 0.09 percent.

European shares are trading higher. Among the major indexes in the region, the CAC 40 Index of France is adding 20.03 or 0.32 percent. The German DAX is climbing 56.06 points or 0.42 percent, the U.K. FTSE 100 Index is up 7.60 points or 0.11 percent.

The Swiss Market Index is progressing 11.47 points or 0.11 percent.

The Euro Stoxx 50 Index, which is a compilation of 50 blue chip stocks across the euro area, is increasing 0.36 percent.

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