U.S. stock futures edged up Friday as investors focused on upcoming corporate earnings and economic indicators. Netflix (NASDAQ:NFLX) beat earnings expectations but shares slipped as analysts noted the results fell short of very high hopes. Meanwhile, a key consumer sentiment report is due soon, and Bitcoin advanced after the U.S. House passed three bills aimed at providing clear regulatory guidelines for digital assets.
Futures gain ground
U.S. futures climbed slightly Friday, hinting at a continuation of the previous session’s gains, which were driven by upbeat second-quarter earnings and signs of steady economic growth despite ongoing tariff concerns.
By 03:51 ET, Dow futures were up 64 points (0.1%), S&P 500 futures rose 8 points (0.1%), and Nasdaq 100 futures added 27 points (0.1%).
Wall Street’s main indexes gained Thursday, buoyed by a wave of positive corporate earnings and optimistic executive commentary. Economic data this week also suggests the U.S. economy is picking up speed, though inflation pressures linked to President Donald Trump’s aggressive trade policies persist.
Economists caution that tariffs may raise prices and slow growth, but uncertainty remains about how severe the impact might be.
“[O]ur base case remains that the tariffs ultimately imposed will not cause a recession — though we expect growth to slow,” Capital Economics analysts wrote in a note.
Netflix earnings
Netflix shares dipped slightly in after-hours trading despite solid Q2 earnings and guidance. The streaming giant posted a diluted EPS of $7.19, beating estimates of $7.08, helped by the huge success of its hit series “Squid Game,” according to LSEG data cited by Reuters.
The company also raised its full-year revenue forecast to between $44.8 billion and $45.2 billion, up from $44.5 billion previously.
The improved outlook partly reflects a weaker U.S. dollar, which analysts at Vital Knowledge described as a “low-quality source.”
Investing.com analyst Thomas Monteiro added the guidance “now feels quite conservative,” calling this “problematic for a stock priced for perfection.” Netflix’s shares have surged over 43% this year on expectations it will further solidify its streaming dominance.
Michigan sentiment report on deck
Investors are gearing up for the University of Michigan’s monthly consumer sentiment index, expected to show a slight rise in July with inflation expectations holding steady.
“We’ll see whether 1-year inflation expectations have continued to drop: they are currently at 5%, though opinions diverge sharply between Democrat (very high) and Republican (very low) responders,” ING analysts said in a note.
The report follows strong retail sales and lower-than-expected jobless claims this week, reinforcing signs of a resilient U.S. economy despite tariffs pushing some prices higher.
Fed’s Waller supports rate cut
Amid this backdrop, the Federal Reserve has mostly taken a wait-and-see stance on interest rates. However, Fed Governor Christopher Waller said Thursday that a rate cut at the central bank’s upcoming meeting is justified, citing growing economic risks.
He noted the tariff-driven inflation rise is likely temporary, not a persistent problem.
“It makes sense to cut” the policy rate by 0.25 percentage points at the Fed’s July 29-30 meeting, Waller said at an event.
Waller’s remarks come as Fed Chair Jerome Powell faces increasing pressure from President Trump to quickly reduce borrowing costs. Powell, emphasizing the Fed’s independence, prefers a cautious approach to assess tariffs’ full impact.
Bitcoin rises after U.S. House passes crypto bills
Bitcoin briefly climbed above $120,000 in Asian trading Friday, on track for its fourth straight weekly gain after the U.S. House approved three bills to create a new regulatory framework for cryptocurrencies.
As of 03:52 ET, Bitcoin was up 1.1% at $119,583.3.
The cryptocurrency hit record highs above $123,000 earlier this week but profit-taking and concerns about the bills’ final passage capped gains.
The “GENIUS Act,” passed by a bipartisan 308-122 vote, mandates stablecoin issuers maintain dollar-backed reserves with regular audits, and sets both federal and state oversight.
Two other bills also passed: the CLARITY Act, which aims to clarify whether digital tokens fall under SEC or CFTC jurisdiction; and the Anti-CBDC Surveillance State Act, which prevents the Fed from issuing a central bank digital currency without Congress’s explicit approval.
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