Inventors and traders will be keeping close eye on the U.S. GDP data due later today. Meanwhile, the USD kept its good form, supported by hopes of massive tax cuts by the Trump administration. Giant companies such as Amazon, Microsoft and Alphabet boosted U.S. markets after showing big gains. Elsewhere, Oil prices are set for a weekly rise. Here are the big things to know for today’s trading.
1. U.S. GDP expected to slowdown
The U.S. is to release preliminary figures on third-quarter gross domestic product (GDP) at 12:30 GMT Friday.
The report is expected to show growth slowing to an annual rate of 2.6% from 3.1%, with a decline in retail sales, industrial production, homebuilding and home sales blamed on Hurricanes Harvey and Irma.
Investors will also keep an eye on a revision to Michigan’s consumer sentiment index for October, set for release at 14:00 GMT.
2. Dollar rally continues
The dollar continued a rally against major rivals that began on Thursday as the U.S. House passed a budget resolution, fueling hopes that Congress will move forward on “massive tax cuts” proposed by President Donald Trump.
The Euro’s decline also supported the greenback after the European Central Bank’s decision to pare its bond purchases but extended the program for at least an additional nine months through September of next year.
Speculation over what would be Trump’s choice for Federal Reserve chair also fueled gains in the dollar. Latest reports have suggested that the President is focused on deciding between Fed governor Jerome Powell and Stanford University economist John Taylor. The latter is generally considered to be the most hawkish among the five candidates on Trump’s shortlist.
3. Tech earnings boost stocks
A series of earnings from tech giants released after Thursday’s U.S. market close were well received by market participants and pointed to solid gains in pre-market trade on Friday.
Shares in Amazon surged 7%, leading the pack, after the online retailer saw sales surge in its recent quarterly results, while the firm was also on watch on reports that it could be moving to become a pharmaceutical distributor.
Microsoft saw gains of 4% after the firm beat profit estimates on gains from cloud services.
Google’s parent Alphabet followed with gains of 3% after the internet giant reported a surge in ad volumes during the third quarter.
Shares in Intel rose more than 2% after the tech firm lifted full year forecasts on data center strength.
Outside of tech, Chevron, Exxon and Colgate-Palmolive will be on earnings watch as they release quarterly earnings before Friday’s opening bell.
4. Oil on track for weekly gains
Oil prices saw investors take profits on Friday, though U.S. crude was on track for weekly gains of around 2% on hopes that OPEC could announce an extension of the agreement to curb production.
Crude had jumped nearly 1% on Thursday as Saudi Arabia’s Crown Prince Mohammed bin Salman backed the extension of the deal set to expire in March 2018. OPEC will hold an official meeting where they could discuss the proposal in November.
Market participants will also keep an eye on increasing U.S. shale production when Baker Hughes releases its most recent weekly rig count data later on Friday.
Last week the oilfield services firm said that its weekly count of oil rigs operating in the U.S. fell by seven to 736, chalking up its third straight decline to the lowest level since June.
