WASHINGTON (dpa-AFX) - The major U.S. index futures are currently pointing
to a roughly flat open on Friday, with stocks likely to show a lack of direction
following the modest pullback seen in the previous session.

Traders may be reluctant to make significant moves as they digest recent
strength in the markets, which saw the major averages reached new record
intraday highs.

The Dow climbed above 40,000 for the first time ever on Thursday before giving
back ground and ending the day slightly lower.

While recent economic data has generated optimism about an interest rate cut in
the coming months, comments from Federal Reserve officials have put a damper on
some of the cheer.

Following the slew of U.S. data released over the past two days, the economic
calendar is relatively quiet today, although the Conference Board's report on
leading economic indicators in April may still attract some attention.

The Conference Board's leading economic index is expected to dip by 0.3 percent
in April, matching the decrease seen in March.

Stocks moved to the upside early in the session on Thursday but fluctuated over
the course of the trading day before eventually closing modestly lower. The
major averages partly offset the strong upward move seen over the two previous
sessions.

While the Dow climbed above 40,000 for the first time in morning trading, the
blue chip index ended the day down 38.62 points or 0.1 percent to 39,869.38. The
S&P 500 dipped 11.05 points or 0.2 percent to 5,297.10 and the Nasdaq fell 44.07
points or 0.3 percent to 16,698.32.

The early strength on Wall Street reflected an extension of the rally seen
during Wednesday's session, which came amid optimism about the outlook for
interest rates following tamer-than-expected consumer price inflation data.

A closely watched Labor Department showed consumer prices rose by less than
expected in April, reinforcing expectations the Federal Reserve will lower
interest rates in the coming months.

According to CME Group's FedWatch tool, the chances rates will be a quarter
point lower by September have reached 85.5 percent.

Buying interest waned over the course of the session, however, with traders
seemingly pausing to assess the near-term outlook for the markets after the
major averages reached new record highs.

On the U.S. economic, the Labor Department released a report this morning
showing a pullback by initial jobless claims in the week ended May 11th.

The Labor Department said initial jobless claims slid to 222,000, a decrease of
10,000 from the previous week's revised level of 232,000.

Economists had expected jobless claims to fall to 220,000 from the 231,000
originally reported for the previous week.

The pullback came after jobless claims rose to their highest level since the
week ended August 26, 2023 in the previous week.

Meanwhile, traders largely shrugged off a separate Labor Department report
showing U.S. import prices jumped by much more than expected in April.

The report said import prices shot up by 0.9 percent in April after climbing by
an upwardly revised 0.6 percent in March.

Economists had expected import prices to rise by 0.3 percent compared to the 0.4
percent increase originally reported for the previous month.

The annual rate of growth by import prices also accelerated to 1.1 percent in
April from 0.4 percent in March, reflecting the largest over-the-year increase
since December 2022.

'The surge in April import prices won't instill the Fed with greater confidence
inflation is decelerating, but officials will assuredly put much more stock in
yesterday's CPI report which was a small step in the right direction and keeps a
rate cut in September, our baseline forecast, firmly on the table,' said Matthew
Martin, U.S. Economist at Oxford Economics.

A separate report released by the Fed showed U.S. industrial production came in
flat in the month of April, with a surge in utilities output offset by decreases
in mining and manufacturing output.

The Fed said industrial production came in unchanged in April after inching up
by a downwardly revised 0.1 percent in March.

Economists had expected industrial production to edge up by 0.1 percent compared
to the 0.4 percent increase originally reported for the previous month.

While most of the major sectors showed only modest moves on the day, housing
stocks moved sharply lower, dragging the Philadelphia Housing Sector Index down
by 2.8 percent.

The index pulled back off its best closing level in well over a month after a
Commerce Department report showed a rebound by housing starts in April but a
continued slump by building permits.

Airline stocks also showed a significant move to the downside, with the NYSE
Arca Airline Index falling by 1.4 percent.

Computer hardware stocks also gave back ground after surging during Wednesday's
session, while tobacco stocks moved notably higher, driving the NYSE Arca
Tobacco Index up by 1.3 percent.

Commodity, Currency Markets

Crude oil futures are rising $0.22 to $79.45 a barrel after climbing $0.60 to
$79.23 a barrel on Thursday. Meanwhile, after falling $9.40 to $2,385.50 an
ounce in the previous session, gold futures are inching up $7.20 to $2,393.70 an
ounce.

On the currency front, the U.S. dollar is trading at 155.80 yen versus the
155.39 yen it fetched at the close of New York trading on Thursday. Against the
euro, the dollar is valued at $1.0840 compared to yesterday's $1.0867.

Asia

Asian stocks ended mixed on Friday as Chinese stimulus hopes offset interest
rate worries and mixed data from China.

The U.S. dollar's recent downward trend paused after three top Federal Reserve
officials urged patience on rate cuts until it's clear inflation is moderating
back to the 2 percent target.

Gold and oil clung to modest gains in Asian trading as the war in Gaza dragged
on and the U.S. House of Representatives voted in favor of a bill aimed at
forcing President Joe Biden to resume arms deliveries to Israel.

Chinese markets rallied as authorities announced fresh measures to revive the
struggling property market.

Shares in China Evergrande Group, the world's most indebted developer with
borrowings of more than $300 billion, soared almost 18 percent and peer China
Vanke jumped 10 percent, after China's central bank cut the minimum down payment
rate for first-time homebuyers and suggested the government could buy up
commercial real estate in a bid to boost the ailing housing market.

China's Shanghai Composite Index surged 1.0 percent to 3,154.03, while Hong
Kong's Hang Seng Index climbed 0.9 percent to 19,553.61.

Investors shrugged off mixed economic data released earlier in the day. Chinese
industrial growth accelerated in April, while growth in April retail sales and
fixed asset investment during the January-April period softened unexpectedly,
official data revealed.

Japanese markets finished lower after a survey showed that majority of Japanese
firms are worried about a weak yen hurting profits.

The Nikkei 225 Index dipped 0.3 percent to 38,787.38, while the broader Topix
Index closed 0.3 percent higher at 2,745.62.

Chip-making equipment manufacturer Tokyo Electron led losses to close about 2
percent lower, while index heavyweight Fast Retailing shed 0.9 percent.

Seoul stocks tumbled, with chip and battery makers leading losses. The benchmark
Kospi dropped 1.0 percent to 2,724.62, after having touched a six-week high on
Thursday.

Samsung Electronics, SK Hynix, LG Energy Solution and Samsung SDI fell 1-2
percent. Samyang Foods soared 30 percent after posting higher-than-expected
first-quarter earnings.

Australian stocks fell notably to snap a two-day winning streak, with banks,
technology and healthcare stocks leading losses.

The benchmark S&P ASX 200 Index slumped 0.9 percent to 7,814.40, while the
broader All Ordinaries Index settled 0.8 percent lower at 8,082.30.

Across the Tasman Sea, New Zealand's S&P/NZX 50 Index dipped 0.2 percent to
11,699.79 ahead of the Reserve Bank of New Zealand's monetary policy decision
due next week.

Europe

European stocks have extended declines on Friday after having snapped a nine-day
winning streak the previous day.

Interest-rate worries were back in focus after three Federal Reserve officials
said the U.S. central bank should keep borrowing costs high for longer.

China reported mixed economic data, but the country's central bank moved again
to help the struggling property sector, helping ease concerns around economic
recovery.

Closer to home, Eurozone CPI was finalized at 2.4 percent year-on-year in April,
unchanged from March's reading.

Earlier today, ECB Vice-President Luis de Guindos said that inflation in the
Eurozone will move near its target of 2 percent in 2025.

Elsewhere, delivering a speech on the state of the economy, U.K. chancellor
Jeremy Hunt promised further tax cuts if the Conservatives win the general
election.

While the French CAC 40 Index has fallen by 0.5 percent, the U.K.'s FTSE 100
Index is down by 0.4 percent and the German DAX Index is down by 0.3 percent.

In corporate news, Swiss luxury goods maker Richemont surged 5.3 percent after
announcing several changes to its board and management team.

Electrolux dropped 1 percent. The consumer electronics major has reannounced its
previous recall of Frigidaire and Kenmore electric ranges following multiple
reports of fires and injuries.

British property development firm Land Securities fell 2.3 percent after annual
earnings from rental income dropped to £371 million from £393 million in 2023.

Consumer goods giant Unilever rose half a percent after launching its ¤1.5bn
share buyback program.

French re-insurer SCOR SE slumped 8 percent after first-quarter Group net income
fell 36.8 percent to 196 million euros from last year's 311 million euros.

ENGIE declined 1.6 percent. The utility reported a marginal decline in EBIT
earnings for the first quarter, hit by declining sales in almost all segments.

U.S. Economic Reports

The Conference Board is scheduled to release its report on leading economic
indicators in the month of April at 10 am ET. The leading economic index is
expected to dip by 0.3 percent in April, matching the decrease seen in March.

At 10:15 am ET, Federal Reserve Board Governor Christopher Waller is due to
speak on payments innovation, technical standards and the Fed's roles at the
International Organization for Standardization Technical Committee 68 Financial
Services 44th Plenary Meeting.

San Francisco Federal Reserve President Mary Daly is scheduled to deliver the
commencement address at the University of San Francisco School of Management at
12:15 pm ET.



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