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US stock futures trod water on Friday as investors absorbed a fresh wave of tariffs uncertainty and awaited a key inflation reading for insight to how the economy is holding up.
Dow Jones Industrial Average futures (YM=F) traded little changed, while those on the S&P 500 (ES=F) slipped nudged down 0.1%. Contracts the tech-heavy Nasdaq 100 (NQ=F) hovered below the flat line, after the major gauges ended Thursday in the green.
Markets are holding fire as they wait to see whether President Trump’s tariffs will stay in place or not after the recent legal drama — a new source of uncertainty. On Thursday, a US appeals court on Thursday paused a trade court block on Trump’s global tariffs, giving the White House until next Monday to file a challenge to the ruling. At the same time, his team is exploring other ways to issue the tariffs.
Read more: The latest on Trump’s tariffs
Trade talks between the US and China are “a bit stalled,” Scott Bessent told Fox News on Thursday. The Treasury Secretary said a call between Trump and President Xi is needed to reach a deal, as the two countries continue to clash over chip curbs and visas on the sidelines.
The wait is also on for fresh print of the Federal Reserve’s preferred inflation gauge due later for any indication of tariffs putting upward pressure on prices. The April personal consumption expenditures (PCE) price index could also offer clues to the economic impact of the trade war, via updates on consumer spending and wage growth. However, many analysts don’t expect US levies to hit the data until the next reading.
Though May has been filled with trade-war switchbacks, US stocks are on track to close the month out on Friday with hefty gains. The S&P 500 (^GSPC) is eyeing a jump of over 6%, the Dow (^DJI), a rise of about 4%. The Nasdaq Composite (^IXIC) is headed for a surge of almost 10% as tech stocks revive. The gauges are set for a winning week, too.
LIVE 6 updates
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Costco stock slips below the flat line after earnings
Costco (COST) stock was roughly flat in premarket trading after the company reported mixed earnings on Thursday.
The wholesale retailer’s adjusted earnings per share were $4.28, above estimates for $4.24, while revenue of $63.21 billion slightly missed expectations.
Yahoo Finance’s Brooke DiPalma reports:
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Good morning. Here’s what’s happening today.
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Nvidia’s $8B setback in China is a trade-war bargaining chip
Yahoo Finance’s Hamza Shaban reports:
Read more here from today’s Morning Brief.
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Gap stock tumbles after it flags up to $300M in tariff costs
Gap’s (GAP) shares sank after the retailer laid out the multimillion-dollar hit to 2025 operating income it expects from President Trump’s tariffs, but kept its 2025 forecast unchanged.
The stock dropped over 14% despite the retailer posting better-than-expected sales and profit in its first quarter results late on Thursday.
Gap said it expects added tariff-related costs of $250 million to $300 million. But the company said it has strategies to halve that amount, without providing full details. It projects a hit of up to $150 million to its full-year operating income, mainly in the second half.
Reuters reported:
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Asia-Pacific markets slide as Trump tariffs reinstated
Markets across the Asia-Pacific saw pullbacks Friday after yesterday’s boost following the temporary reinstatement of Trump’s “unlawful” tariffs.
Japan’s benchmark Nikkei 225 (^N225) declined 1.1% with investors eyeing growing inflation.
In South Korea, the Kospi (^KS11) dropped 0.9% as markets remain rattled ahead of a presidential election in a tough political climate.
Hong Kong’s Hang Seng Index (^HSI) sank 1.5% as China’s CSI 300 (3188.HK) sli0.3%
Australia’s S&P/ASX 200 (^AXJO) hovered around the baseline, with a gain of less than 0.1%
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Trending tickers in after-hours trading
Newsmax (NMAX)
Shares in conservative media group Newsmax dropped 10.4% after hours Thursday resulting in a drop of over 75% since the company went public in March. Despite growing viewership Newsmax has faced a number of problems and is currently still engaged in a lawsuit with Dominion Voting Systems over “false claims” spread by the news source after the 2020 election. An overly ambitious IPO valuation combined with weak financial returns have continued to crater stock value.
Ulta Beauty (ULTA)
Ulta Beauty stock jumped up 8.3% in extended trading after the company beat analyst expectations for Q1. A 4.5% increase in net sales leading to $2.8b in revenue allowed Ulta to issue better-than-expected guidance for Q2. Earnings were reported at $6.70 per share.
The Gap (GAP)
Stock in apparel company The Gap nosedived 14.8% after-hours despite a solid earnings report as investors eye a potential a $300m hit to the bottom line from Trump’s tariffs. The Gap reported revenue of $3.46 billion, well over analyst expectations of $3.42, while earnings per share came in at $0.51.
