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

Traders may take a step back following the recent volatility in the markets,
which saw stocks surge on Wednesday before pulling back sharply on Thursday.

Early trading may be impacted by reaction to a Labor Department report showing
producer prices in the U.S. increased by slightly more than expected in the
month of June.

The Labor Department said its producer price index for final demand rose by 0.2
percent in June following a revised unchanged reading in May.

Economists had expected producer prices to inch up by 0.1 percent compared to
the 0.2 percent dip originally reported for the previous month.

The report also said the annual rate of producer price growth accelerated to 2.6
percent in June from an upwardly revised 2.4 percent in May.

The annual rate of producer price growth was expected to creep up to 2.3 percent
from the 2.2 percent originally reported for the previous month.

Traders are also reacting to earnings news from several big-name financial
companies, with Wells Fargo (WFC) moving sharply lower in pre-market trading
after reporting weaker than expected net interest income for the second quarter.

Shares of JPMorgan Chase (JPM) are also seeing modest pre-market weakness even
though the financial giant reported second quarter revenues that exceeded
analyst estimates.

On the other hand, shares of Citigroup (C) are likely to see initial strength
after the company reported second quarter results that beat expectations on both
the top and bottom lines.

Stocks showed a substantial downturn over the course of the trading session on
Thursday, with the Nasdaq and the S&P 500 pulling back sharply after reaching
new record intraday highs in early trading.

The tech-heavy Nasdaq posted a particularly steep loss on the day, plunging
364.04 points or 2.0 percent to 18,283.41, while the S&P 500 slumped 49.37
points or 0.9 percent to 5,584.54.

The narrower Dow, on the other hand, spent most of the day lingering near the
unchanged line before closing up 32.39 points or 0.1 percent at 39,753.85.

While optimism about the outlook for interest rates contributed to early
strength on Wall Street, buying interest waned shortly after the start of
trading.

Traders may have seen the increased confidence in a September rate cut as
already priced into the markets following Wednesday's rally.

The subsequent sell-off came as traders took the opportunity to cash in on the
recent strength in the markets, with some of the biggest tech winners of the
year like AI darling Nvidia (NVDA) leading the pullback.

Nonetheless, the Federal Reserve is still seen as likely to lower rates in
September after a report from the Labor Department showing showed prices in the
U.S. unexpectedly edged slightly lower in the month of June.

The Labor Department said its consumer price index slipped by 0.1 percent in
June after coming in unchanged in May. Economists had expected consumer prices
to inch up by 0.1 percent.

The unexpected dip by consumer prices came as another steep drop by gasoline
prices more than offset a continued increase in shelter costs.

Excluding food and energy prices, core consumer prices crept up by 0.1 percent
in June after rising by 0.2 percent in May. Core prices were expected to
increase by another 0.2 percent.

The report also said the annual rate of consumer price growth slowed to 3.0
percent in June from 3.3 percent in May. Economists had expected the pace of
price growth to decelerate to 3.1 percent.

The annual rate of core consumer price growth also slowed to 3.3 percent in June
from 3.4 percent in May. The pace of growth was expected to remain unchanged.

'This is the kind of CPI report the Fed wants to see (to) feel more confident
that inflation is headed back toward their target,' said Bill Adams, Chief
Economist for Comerica Bank. 'The Fed targets 2% inflation by the personal
consumption expenditures price index, which usually runs a little cooler than
the CPI.'

He added, 'The CPI report won't be enough to convince the Fed to cut interest
rates at their decision this month, but a rate cut at the following decision in
September is quite likely.'

Semiconductor stocks moved sharply lower over the course of the session, giving
back ground following recent strength in the sector.

The Philadelphia Semiconductor Index plunged by 3.5 percent, pulling back off
the record closing high set on Wednesday.

Software and computer hardware stocks also showed notable moves to the downside,
contributing to the steep drop by the tech-heavy Nasdaq.

On the other hand, housing stocks saw substantial strength amid optimism about
lower interest rates, resulting in a 5.7 percent spike by the Philadelphia
Housing Sector Index.

Considerable strength also emerged among gold stocks, as reflected by the 2.8
percent surge by the NYSE Arca Gold Bugs Index. The strength in the sector came
amid a sharp increase by the price of the precious metal

Interest rate-sensitive commercial real estate, telecom and utilities stocks
also saw significant strength, while oil service, transportation and networking
stocks also showed strong moves to the upside.

Commodity, Currency Markets

Crude oil futures are climbing $0.73 to $83.35 a barrel after rising $0.52 to
$82.62 a barrel on Wednesday. Meanwhile, after surging $42.20 to $2,421.90 an
ounce in the previous session, gold futures are slumping $18.40 to $2,403.50 an
ounce.

On the currency front, the U.S. dollar is trading at 158.99 yen versus the
158.84 yen it fetched at the close of New York trading on Thursday. Against the
euro, the dollar is valued at $1.0879 compared to yesterday's $1.0868.

Asia

Asian stocks ended mixed on Friday as investors reacted to surprisingly soft
U.S. inflation data, mixed Chinese trade figures and comments from several
Federal Reserve officials on the interest rate trajectory.

The dollar edged up slightly as the latest inflation data fueled bets for a
September rate cut and a Pew Research Centre poll showed former President Trump
leading President Biden by 4 points among registered voters.

Gold edged lower but was headed for a third straight week of gains. Oil extended
gains amid signs of easing inflationary pressures in the United States, the
world's biggest oil consumer.

China's Shanghai Composite Index ended a choppy session marginally higher after
the release of mixed trade data.

Chinese exports rose 8.6 percent year-on-year by value in June, while imports
dropped 2.3 percent, customs data revealed.

Hong Kong's Hang Seng Index surged 2.6 percent to 18,293.38 after China unveiled
fresh curbs on short selling.

Ahead of next week's Third Plenum meeting, there was speculation that Chinese
policymakers may announce a tax revamp to plug gaps in local government funding.

Japanese stocks tumbled as the yen held gains on speculation that authorities
may have again intervene in forex markets to prop up the ailing currency.

The Nikkei 225 Index plunged 2.5 percent to 41,190.68, while the broader Topix
Index settled 1.2 percent lower at 2,894.56.

Chip-making equipment giant Tokyo Electron plummeted 6.2 percent and smaller
peer Disco lost 8.8 percent after the Philadelphia Semiconductor Index fell more
than 3 percent overnight.

Seoul stocks fell sharply, with the Kospi closing down 1.2 percent at 2,857.

Australian markets rose notably to hit record highs as banks surged on
speculation that a Fed rate cut would impact the Reserve Bank of Australia's
stance on interest rates. The big four banks rose 1-2 percent.

The benchmark S&P/ASX 200 Index hit a record high of 7,969.10 before closing at
7,959.30, up 0.9 percent from its previous close. The broader All Ordinaries
Index climbed 0.9 percent to 8,206.10.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 Index rose 0.6 percent to
12,134.97 despite weak manufacturing data.

Europe

European stocks have moved higher for a third straight session on Friday as
surprisingly soft U.S. inflation data bolstered hopes for two Federal Reserve
rate cuts this year.

While the French CAC 40 Index has advanced by 0.7 percent, the German DAX Index
and the U.K.'s FTSE 100 Index are both up by 0.2 percent.

Swedish telecom company LM Ericsson has soared after EBITA, a key earnings
metric, beat analysts' expectations in the second quarter.

Similarly, Lifco AB has also shown a substantial move to the upside after
posting better-than-expected quarterly earnings.

Aker Solutions ASA has also moved sharply higher after its second-quarter profit
beat expectations.

Drug maker AstraZeneca has risen after outlining its 'bold ambition' to deliver
$80 billion in revenue by 2030 during its recent Investor Day.

Meanwhile, specialist fund manager Ashmore Group has slumped after an update
that its assets under management decreased by $2.4 billion over the quarter
ended June 30, 2024.

U.S. Economic Reports

Following yesterday's tamer-than-expected consumer price inflation data, the
Labor Department released a report on Friday showing producer prices in the U.S.
increased by slightly more than expected in the month of June.

The Labor Department said its producer price index for final demand rose by 0.2
percent in June following a revised unchanged reading in May.

Economists had expected producer prices to inch up by 0.1 percent compared to
the 0.2 percent dip originally reported for the previous month.

The report also said the annual rate of producer price growth accelerated to 2.6
percent in June from an upwardly revised 2.4 percent in May.

The annual rate of producer price growth was expected to creep up to 2.3 percent
from the 2.2 percent originally reported for the previous month.

At 10 am ET, the University of Michigan is scheduled to release its preliminary
reading on consumer sentiment in the month of July. The consumer sentiment index
is expected to inch up to 68.5 in July after falling to 68.2 in June.



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