US stock futures edged lower on Friday after closing higher on Thursday. Futures contracts tied to the Dow Jones Industrial Average fell 65 points. S&P 500 futures slipped 26 points to 0.6%. Futures tied to Nasdaq 100 plunged 170 points to 1.13%.
US Economic Outlook
The Dow Jones index gained 153 points on Thursday after the release of the US GDP data for the second quarter. The real gross domestic product (GDP) increased at an annual rate of 6.5% in this year’s second quarter.
However, this was weaker than the estimated advance of 8.5%. The increase in the GDP reflected the continued expansion in the economy. It also indicated growth in economic recovery, albeit at a slower pace.
The weekly initial jobless claims data in the US was also released on Thursday. In the week ending July 24, the initial claims were 400,000, a 24,000 decrease from the previous week’s level. The previous week’s level was revised up by 5,000 to 424,000.
Both the GDP and unemployment numbers came in a day after the Fed’s two-day policy meeting. The Federal Reserve maintained its cash rate and its bond-buying program. According to the committee, the Fed would hike its interest rates once the 2% inflation target was met.
US Treasury yields were in the red on Friday. The yield on the benchmark 10-year Treasury note fell to 1.251%. The yield on the 30-year Treasury bond slipped to 1.906%.
Oil prices ebbed lower but were set for strong weekly gains on demand growth. WTI crude dipped to $73.45 per barrel while Brent crude fell to $75.90.
Dow Jones Movers
Chevron Corporation was the best performer in Dow Jones premarket trade. Chevron is the third-largest oil company in America. Chevron is scheduled to release its second-quarter earnings report later in the day.
Apple Inc led the laggards in the premarket trade. Apple is the world’s largest technology company by revenue. On Thursday, the company sold $6.5 billion of bonds as it looked to return cash to shareholders.
Visa Inc is an American multinational financial services corporation. The company’s stock price fell in the premarket trade after it recently posted its earnings and revenue for its third quarter. Visa’s quarterly earnings came in at $1.49 per share beating estimates. It also posted revenues of $6.13 billion.
Walmart Inc was also among the drags in premarket trading. The retail company recently announced its plans to cover 100% of college and tuition for its workers.