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- US futures were broadly flat on Friday as stocks traded near record highs.
- Disney's upbeat report comes in a strong earnings season that has boosted stocks.
- Oil fell as surging Delta COVID-19 cases prompted cuts to demand forecasts.
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US stock futures wavered near record highs Friday as investors took heart from upbeat corporate earnings, while oil futures slid as concerns grew about demand growth.
Dow Jones futures were up 0.15%, S&P 500 futures rose 0.11% and Nasdaq futures gained 0.1%, as of 05:02 am E.T. on Friday. The S&P 500 closed at a new all-time high Thursday after producer-price inflation beat analyst estimates and jobless claims fell for the third week in a row.
Robust corporate quarterly financial reports have given US stock markets a lift this earnings season, with Disney the latest to come in strong in its update Thursday. The entertainment company beat Wall Street expectations for its third quarter with its highest sales and profit since before the pandemic, as its theme parks reopened in the US and lockdown restrictions elsewhere kept consumers attached to at home streaming. Disney shares were up more than 5% in premarket trading.
Oil futures dipped Friday after monthly reports from the the International Energy Agency and OPEC prompted worries over demand growth. The IEA lowered its 2021 demand forecast and predicted a surplus in 2022 as the Delta coronavirus variant continues to spread. While OPEC kept its demand growth outlook steady, it raised its view of non-OPEC supply.
"With a new strain of COVID-19 spreading throughout the world, a shadow of doubt is now being cast on future growth prospects and thereby on demand prospects for key raw materials, like oil," Dimitri Zabelin, analyst at DailyFX, said. "The cumulative effect of quasi-restrictive policies from top crude consumers is nevertheless a fundamental headwind."
Brent crude was down 0.17%, trading at $71.19 per barrel, and WTI crude fell to $68.91 per barrel, 0.26% lower.
European markets started Friday higher in muted trading, following the mood in the US. Frankfurt's DAX was up 0.43%, while London's FTSE 100 gained 0.23%, and the Euro Stoxx 50 rose 0.2%.
Stock markets in Asia took a more negative tone as the spread of the Delta variant continued to weigh on investors' mood. Tokyo's Nikkei 225 closed 0.14% lower, while the Shanghai Composite declined 0.24% and Hong Kong's Hang Seng index fell 0.59% by the end of the trading day.
COVID concerns continued to niggle after two major Chinese ports were put under partial closures as the result of new cases, seen as possibly renewing global supply chain issues. Worries about regulatory pressures from China also persisted as investors absorbed Beijing's five-year plan, which promised increased oversight.
Yield on the US 10-year Treasury note stood at 1.346%, down 2.1 basis points after Thursday's jobs and inflation data gave mixed signals about economic recovery, prompting renewed fretting about when and whether the Federal Reserve will pull back on monetary stimulus.