Futures tied to Canada's main stock index edged up on Friday as investors prepared to parse the latest domestic labor market data.
As of 06:23 Eastern Time (18:23 Beijing Time), the S&P/TSX 60 index standard futures contract rose 3 points, or 0.2%.
The S&P/TSX composite index fell 0.6% to 27,761.27 on Thursday, retreating from its all-time intraday high.
Disappointing earnings reports from Canadian Tire (TSX: CTCa ) and Restaurants Brands dampened market sentiment, while weak results from insurer Manulife Financial (TSX: MFC ) also had a negative impact.
The results offer a more mixed picture for quarterly returns from Canada's biggest names, particularly after e-commerce group Shopify (NASDAQ: SHOP ) issued a better-than-expected third-quarter revenue forecast. Shopify shares surged earlier in the week on its upbeat outlook, but have since given back some of those gains.
Investors are now focused on Canada's upcoming employment data for July, with economists expecting the country's unemployment rate to rise slightly to 7% from 6.9% last month.
US futures point to gains
U.S. stock futures edged higher on Friday as investors digested Trump's interim nominee for the vacant Federal Reserve Board seat and assessed a dwindling supply of corporate earnings reports.
At 06:37 ET, Dow futures rose 85 points, or 0.2%, S&P 500 futures rose 17 points, or 0.3%, and Nasdaq 100 futures rose 67 points, or 0.3%.
Wall Street's major indexes closed mixed in volatile trading Thursday but were on track for weekly gains, with the S&P 500 up 1.6% and the Dow Jones Industrial Average poised for a 0.9% gain. The Nasdaq Composite was expected to climb 2.9%.
Fed cuts interest rates, chairman's successor becomes focus
The Trump administration's tariffs took effect Thursday, imposing import duties of up to 50% on regional economies.
Several countries, including the European Union, have reached trade deals with the United States that have reduced tariffs, but investors remain wary of the economic impact of the tariffs.
Thursday's rise in initial jobless claims, coupled with last week's disappointing jobs report, further suggested the labor market continued to cool.
The data reinforced expectations that the Federal Reserve will cut interest rates in September.
U.S. President Trump has repeatedly called for the central bank to cut interest rates and announced on Thursday that his chief economic adviser, Stephen Miran, would be his nominee to fill the vacant seat on the Federal Reserve Board, replacing Adriana Kugler, who abruptly resigned from the Fed's board last week.
If confirmed by the Senate, Miran will have the right to vote on the upcoming interest rate decision. It is worth noting that Miran has been a staunch supporter of Trump. He particularly believes that comprehensive US tariffs will not significantly push up domestic inflation and that the cost of tariffs will be mainly borne by overseas suppliers.
Trump said Miran would serve in the role temporarily but hinted that his term could be extended.
"We will continue to search for a permanent replacement," Trump said in a social media post. Crucially, this person could ultimately succeed Powell when his term as Fed chairman ends next year.
Solid quarterly earnings
More than two-thirds of the benchmark S&P 500 index have reported their latest quarterly results, with the number of companies beating earnings expectations one of the highest in recent history, according to HSBC analysts.
About 80% of reports from the benchmark index’s components beat analysts’ earnings expectations, with renewed optimism about the prospects for artificial intelligence applications helping to mask concerns about the economic outlook, which was clouded by sweeping U.S. tariffs.
HSBC analysts said in a note that the S&P 500 is now on track to post 10% earnings per share growth in the second quarter, almost double Wall Street's initial estimate.
Elsewhere, Pinterest (NYSE: PINS ) shares plunged more than 11% in pre-market trading as analysts noted that the social media group's sales in the U.S. and Canada lagged behind its closest competitor in the second quarter.
Expedia (NASDAQ: EXPE ) shares surged in premarket trading after the travel booking site beat second-quarter earnings and revenue expectations.
Block shares rose after the Cash App parent company raised its full-year gross profit guidance.
Gold futures surge
Spot gold prices fell while gold futures rose, with the gap between the two widening after the United States reportedly imposed import tariffs on one-kilogram gold bars.
At 06:37 ET, spot gold fell 0.3% to $3,387.29 per ounce, while COMEX December gold futures rose 0.6% to $3,474.70 per ounce.
The Financial Times reported, citing a ruling letter dated July 31, that U.S. Customs and Border Protection said one-kilogram and 100-ounce gold bars should be classified under customs codes subject to potential tariffs.
The CBP decision diverges sharply from expectations that gold bar imports would be exempt from Trump's sweeping tariffs. One-kilogram bars are the most common form traded on the Comex, the world's largest gold futures market, with the majority of them originating from Switzerland.
Crude oil on track for weekly decline
Oil prices rose but were still on track for a weekly loss on concerns that U.S. tariffs will hit global economic activity and reduce demand for crude.
At 06:37 ET, Brent futures rose 0.7% to $66.88 a barrel, and U.S. WTI crude futures rose 0.7% to $64.32 a barrel.
Both benchmarks were on track for weekly losses of 3% to 4%, which would be their biggest weekly declines since late June.
Higher U.S. tariffs on numerous trading partners took effect on Thursday, raising concerns about a prolonged setback in global demand.
Oil prices have already been hit by the OPEC+ group's decision last weekend to completely remove its deepest production cuts in September, months ahead of target.