Stock futures stumble after online inflation print

US stocks were hesitant at the open on Friday, with some signs suggesting indices could end the week on a bullish note as tech stocks head for modest gains.

The S&P 500 (^GSPC) gained 0.2%, while the Dow Jones Industrial Average (^DJI) was little changed. The tech-heavy Nasdaq Composite (^IXIC) rose about 0.4%.

The yield on the benchmark 10-year US Treasury rose to 3.437% from 3.397% on Thursday. The dollar index added 0.1%, trading at $101.94 on Friday morning.

Stocks extended a string of losses on Thursday as investors dissected economic data and corporate earnings reports, clouding their view of the health of the U.S. economy.

Despite concerns about the economy, markets have been quite resilient and have mostly rallied this year, according to JP Morgan’s US Market Intelligence team. However, the team does not believe that a recession is currently priced into stock market prices.

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

The S&P 500 is expected to post a 3.9% year-over-year earnings decline for the fourth quarter, according to data from FactSet Research. It would mark the first year-over-year drop in revenue reported by the index since 2020, if it materializes.

Wall Street ran through another round of data and Fedspeak on Thursday. New York Federal Reserve Chairman John Williams said Thursday that the central bank has more rate hikes ahead “to bring inflation back to our 2% target on a sustainable basis.”

Federal Reserve Vice Chair Lael Brainard and Federal Reserve Bank of Boston Chair Susan Collins made similar remarks on Thursday ahead of the Fed’s next monetary policy meeting, which begins Jan. 1. 31.

Philadelphia Fed President Patrick Harker repeated his views on Friday morning to move to 25 basis point rate hikes.

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

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

And the era of password sharing will soon end. The streaming giant will apply password sharing rules “more broadly” towards the end of the first quarter of 2023, Netflix said in its earnings report on Thursday. Shares jumped nearly 6% on Friday morning.

Alphabet Inc., parent company of Google. (GOOG, GOOGL) said it was laying off 12,000 workers, more than 6% of its global workforce, becoming the latest tech company to downsize after rapidly expanding during the pandemic. Alphabet Inc., parent company of Google. shares added 3% at the open.

On the commodities market, oil prices soared. Brent crude, the global benchmark, rose nearly 0.6% to $86.64 a barrel, and WTI, the US benchmark, rose 0.5% to around $80.72. Both could end the week with another gain, buoyed by optimism about rebounding demand in China.

Meanwhile, in the crypto market, Genesis Global Capital filed for bankruptcy protection late Thursday in the U.S. Bankruptcy Court for the Southern District of New York. The move comes after the company was unable to raise funds for its struggling lending unit and cut 30% of its workforce in another round of layoffs in early January.

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

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