5 Things to Know Before the Stock Market Opens

Stock futures are holding steady this morning as investors await new economic data to cap the holiday-shortened trading week; the fourth-quarter report on gross domestic product and the Federal Reserve’s preferred measure of inflation are due out this morning; concerns about the private credit market are rising after Blue Owl Capital said it has liquidated $1.4 billion in assets to pay out investors who are looking to exit some of its funds; Opendoor stock is soaring after the online real estate platform reported better-than-expected results; and Applovin shares are rising amid reports the mobile ad technology firm is looking to build its own social media network. Here’s what you need to know today.

Stock Futures Little Changed Ahead of Economic Data

Stock futures are little changed as investors await key data on economic growth and inflation. (more on that below) Futures tied to the Dow Jones Industrial Average, S&P 500 and Nasdaq were each down 0.1% recently. The major indexes lost ground on Thursday, snapping three-day winning streaks for the Dow and S&P 500. Crude oil futures were down 0.5%, still trading above $66 barrel after the commodity hit its highest price in six months yesterday amid reports of the U.S. moving military assets to the Middle East as it negotiates with Iran over the country’s nuclear program. Gold futures were up nearly 1% at around $5,040 an ounce, while the 10-year Treasury yield, which influences a host of consumer borrowing costs such as mortgage rates, slipped to 4.06% from yesterday’s close of 4.08%. Bitcoin was little changed at around $68,000.

GDP and Inflation Data Set for Release This Morning

Investors will get a new set of economic data to assess this morning, with gross domestic product (GDP) figures and Personal Consumption Expenditures inflation data scheduled to be released at 8:30 a.m. ET. GDP is projected to come in at 2.5% for the fourth quarter, down from 4.4% in the third quarter as the economy felt the impact of the record government shutdown that lasted through parts of October and November. PCE inflation is projected to show prices were up 2.8% in December compared to a year ago, the same as it was in November, while “core” PCE, which excludes the more volatile prices of energy and food, is expected to tick higher to 3.0% from 2.8% in November. Each figure is still well above the Federal Reserve’s stated goal of 2% inflation.

Blue Owl Sparks Concerns About Private Credit Market

The private credit market received a warning sign on Thursday after Blue Owl Capital (OWL) said it has liquidated $1.4 billion in assets to pay out investors who are looking to exit some of its private credit funds. Through the funds, Blue Owl and other private credit firms make loans to businesses that may have trouble finding loans elsewhere, and receive high interest rates in return, allowing them to pay out dividends to the funds’ investors. The growing number of retail investors in private credit funds is increasing the rate of investors looking to cash out of the funds, as retail investors are proving to be more risk-averse than wealthy investors who have invested in private credit previously, according to The Wall Street Journal. Experts including JPMorgan Chase (JPM) CEO Jamie Dimon have previously questioned the industry’s stability, and said the growing private credit market could eventually fall apart.  Blue Owl shares were down 3% in recent premarket trading after sinking 6% on Thursday.

Opendoor Stock Surges on Strong Earnings

Opendoor Technologies (OPEN) stock jumped after the online real estate platform’s fourth-quarter revenue came in well above expectations. The company posted revenue of $736 million, along with a smaller adjusted loss than analysts had forecast. Opendoor said it increased its number of home purchases by 46% compared to the third quarter, and said the average number of days a home is in the company’s possession fell by 23%. The company said first-quarter revenue is expected to decline by about 10% from the fourth quarter, but said it still plans to be posting adjusted profits by the end of this year. Opendoor shares were up 18% ahead of the opening bell.

Applovin Shares Pop on Plans to Start Own Social Media Network

Applovin Corp. (APP) shares are gaining ground Friday amid reports that the mobile ad tech company is looking to build its own social media network. The company was one of many bidders for TikTok’s U.S. operations last year, and now the company has a job posting for a software engineer to “architect the digital backbone of our next-generation social platform.” An executive also recently appeared on a Chinese-language podcast discussing the plans, per Bloomberg. The executive reportedly said that, unlike Meta Platforms (META), which built a social network in Facebook before having a method to monetize it, Applovin already has the monetization technology, it just needs its own platform. Applovin shares were up more than 4% recently.

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