US pre-open: Futures edge higher as Tesla gains, chip stocks remain under pressure

(Sharecast News) - Wall Street futures were mostly higher ahead of the opening bell on Friday as major indices looked set to close out the week in negative territory. As of 1230 BST, Dow Jones and S&P 500 futures were both up 0.17%, while Nasdaq-100 futures had the index opening 0.06% lower.

The Dow closed 556.21 points higher on Thursday as stocks erased early losses to finish in positive territory after a sharp drop in Treasury yields.

Tesla shares were higher early on Friday, rising about 3% after unveiling its next‑generation roadster, though the model was not expected to enter production until 2028.

Elsewhere, chip stocks remained under pressure, with Micron, AMD and Sandisk all weaker as the sector continues to struggle amid renewed jittersover competition from China

In terms of earnings, Travelers slipped in pre‑market trade after posting its third‑quarter numbers, despite earnings coming in comfortably ahead of expectations. The insurer delivered adjusted earnings per share of $9.18, well above the $7.25 consensus, while revenues rose to $12.41bn, ahead of forecasts for $11.31bn and broadly flat year‑on‑year. Net income edged up to $1.91bn, or $9.04 per diluted share, from $1.88bn a year earlier. Core income increased to $1.947bn, driven by stronger prior‑year reserve releases and higher investment income, partly offset by $538m in catastrophe losses, up from $402m in the prior‑year quarter.

On another note, Federal Reserve chairman Kevin Warsh spoke at an IMF event in Bangkok overnight and, while he offered no guidance on whether rates might rise before year‑end, traders interpreted the lack of comment as a sign the central bank will hold policy steady later this month. The CME FedWatch tool now implies an 85% probability the central bank keeps its benchmark rate unchanged at its October meeting.

On the macro front, September's import/export price index will be published at 1330 BST, while last month's capacity utilisation and industrial production figures will follow at 1415 BST.





Reporting by Iain Gilbert at Sharecast.com