Opening Comment — Friday, July 31, 2026
DJIA: 52,208.06, up 613.92
S&P 500: 7,437.63, up 121.48
NASDAQ: 25,122.18, up 679.24
Stocks higher to end out week
Stock futures are higher Friday morning following gains in technology stocks as investors digest this week’s earnings releases. Investors are also focused on today’s key economic updates with attention on the second-quarter Employment Cost Index (ECI) and the finalized July reading of the University of Michigan consumer sentiment survey. As of 7:25 AM ET, the Dow is rising 0.5%, while the S&P 500 is up 0.4%. The Nasdaq 100 is increasing 1.2% relative to fair value on the GLOBEX.
U.S. equities were higher on Thursday as the core Personal Consumption Expenditures (PCE) Price Index, the Federal Reserve’s (Fed’s) preferred gauge of inflation, rose 0.1% month-over-month (MOM) and 3.3% year-over-year (YOY) in June. Personal income and spending rose 0.2% and 0.3% MOM, respectively, below consensus estimates. Additionally, the advance estimate of second-quarter gross domestic product growth came in at a weaker-than-expected 1.5% annualized pace, although personal consumption increased a stronger-than-expected 3.2%. Meanwhile, initial jobless claims increased, though continuing claims for the week prior fell. The Dow was up 1.2%, while the tech-heavy Nasdaq Composite rose 2.8%. The S&P 500 increased 1.7% with six of 11 sectors finishing in positive territory. The Information Technology sector was the top performer, rising 5.2%, while the Communication Services sector was the bottom performer, falling 2.5%.
Technical Analysis
As of midday Thursday, the S&P 500 remains in an uptrend. Resistance is at the recent high of 7,621, while support is provided by the 50-day moving average at 7,468 and the 200-day moving average at 7,020.
On the data front, the second-quarter ECI is expected to increase 0.8% quarter-over-quarter (QOQ), compared with the prior quarter’s 0.9% rise. Meanwhile, the Market News International Chicago purchasing managers' index (PMI) for July is projected to come in at 56.0, down slightly from the prior month’s reading of 56.7. The finalized July reading of consumer sentiment from the University of Michigan is expected to come in at 54.0 versus the initial reading of 54.4, while one-year and 5-10-year inflation expectations are projected to come in at 4.3% and 3.3%, compared to the preliminary readings of 4.2% and 3.3%, respectively.
Across the pond, European stocks are higher in mid-day trading as the preliminary reading of July headline eurozone Consumer Price Index (CPI) increased 0.2% MOM and 2.9% YOY, both in line with expectations, while core CPI showed a stronger-than-expected increase of 2.5% YOY. France’s preliminary CPI increased a stronger-than-expected 0.6% MOM and 2.1% YOY in July. The country’s June Producer Price Index (PPI) fell 0.6% MOM and eased to 2.6% YOY. Meanwhile, Germany’s unemployment change increased by 6,000 in July, while the unemployment rate ticked up to 6.4%.
Overnight in Asia, stocks were mostly higher as China’s July manufacturing PMI fell to 49.2, while the non-manufacturing PMI also weakened to 49.0. Japan’s Tokyo headline and core CPI both accelerated to 2.0% YOY in July. Meanwhile, the country’s June industrial production increased 1.3% MOM and 4.2% YOY, while retail sales growth slowed to 0.5% YOY and contracted 4.1% MOM. Japan’s jobless rate remained unchanged at 2.5%, while the job-to-applicant ratio edged up to 1.18. Elsewhere, South Korea’s industrial production rose a stronger-than-expected 6.4% MOM and 5.8% YOY in June. In Australia, the PPI accelerated to 1.3% QOQ and 3.6% YOY in the second quarter.
In FOREX trading, the U.S. dollar is higher as the Bank of Japan left its policy rate unchanged, in line with expectations.
Over in the commodity pits, West Texas Intermediate (WTI) crude oil is 0.7% higher at $84.13/barrel.
In the metals complex, gold is 1.2% lower at $4,054.59/ounce following a strengthening U.S. dollar.