U.S. stock futures indicated a quiet open on Friday, following a session where major indexes reached new record highs. Investors are closely watching several key corporate developments, including a positive forecast from FedEx, the global launch of Apple's iPhone 17, and a challenging earnings report from homebuilder Lennar.
Additionally, geopolitical discussions concerning TikTok's U.S. operations and a dip in the housing market are influencing market sentiment as the week concludes.
Key Takeaways
- U.S. stock futures show slight gains after major indexes, including the Russell 2000, hit record highs.
- FedEx shares rise after the company reinstated its full-year financial outlook, projecting 4% to 6% revenue growth.
- Apple's iPhone 17 goes on sale globally, with reports of strong consumer demand for its new models.
- Homebuilder Lennar's stock falls after reporting a significant drop in quarterly profits and revenue.
- President Trump and Chinese leader Xi Jinping are scheduled to discuss a potential deal for TikTok's U.S. operations.
US Stock Futures Point to Continued Gains
Stock futures contracts for the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite all posted modest gains of approximately 0.1% in early trading. This follows a strong performance on Thursday, where a rally in technology stocks pushed major indexes to new records.
The Russell 2000 index, which tracks small-cap companies, also achieved a significant milestone. On Thursday, it recorded its first record close since November 2021, signaling broader market optimism potentially linked to expectations of future interest rate cuts by the Federal Reserve.
Broader Market Indicators
In the bond market, the yield on the 10-year Treasury note, a key benchmark for borrowing costs, stood at 4.14%. In digital assets, Bitcoin (BTCUSD) experienced a slight decline, trading around $116,500. Meanwhile, gold futures remained stable, holding near the $3,680 per ounce mark.
FedEx Reinstates Annual Forecast, Boosting Shares
Shares of FedEx (FDX) increased in premarket trading after the logistics company reinstated its full-year financial guidance. The company had previously suspended its outlook in June due to uncertainty surrounding international tariffs.
FedEx now projects revenue growth between 4% and 6% for the current fiscal year. This forecast is ahead of what many analysts had anticipated. The positive guidance was supported by strong first-quarter results.
First-Quarter Performance Details
For the first quarter, FedEx reported an adjusted earnings per share of $3.83. Revenue for the period increased by nearly 3% to reach $22.2 billion. Both figures surpassed consensus estimates from analysts. The company noted that a rise in U.S. shipping volumes contributed to the positive results.
Strategic Initiatives
FedEx also confirmed it is on schedule with its long-term strategic plans. The company aims to achieve $1 billion in cost reductions by fiscal 2026 and complete the spinoff of its freight business by June of next year.
Before Friday's session, FedEx shares had declined by approximately 20% year-to-date. The renewed outlook helped the stock gain about 1% in premarket activity.
Apple's iPhone 17 Hits Global Markets
Apple (AAPL) launched its highly anticipated iPhone 17 lineup worldwide on Friday. Early reports from Asia and Europe indicate strong consumer interest, with long lines forming at retail stores. Demand appears particularly high for the premium Pro models.
The new series includes four distinct models. One notable addition is the "Air" model, which Apple has marketed as its thinnest iPhone to date. Other upgrades across the lineup include longer battery life, more durable materials to resist scratches, and enhanced camera systems.
"Despite concerns about its AI strategy, the initial consumer response to the iPhone 17 launch appears robust, especially for the higher-end devices."
Apple Stock Performance
Despite the launch-day excitement, Apple's stock has faced challenges in 2025. Shares have fallen 5% since the beginning of the year, making it the only company among the "Magnificent 7" mega-cap tech stocks to be in negative territory for the year. Some investors have expressed concern that Apple is lagging behind competitors in integrating artificial intelligence features into its products. On Friday, AAPL shares were up about 1% ahead of the market open.
Lennar Reports Lower Profits Amid Housing Slowdown
Homebuilder Lennar (LEN) saw its shares decline nearly 3% in premarket trading after releasing a disappointing quarterly earnings report. The company's profits fell as it navigates a sluggish U.S. housing market.
For its fiscal third quarter, Lennar reported an adjusted earnings per share of $2.29. While this figure was better than analysts' estimates, it represented a sharp decline from the $4.26 per share reported in the same quarter last year.
Key Financial Metrics
- Quarterly Revenue: $8.8 billion, down more than 6% year-over-year and below expectations.
- New Orders: Increased by 12%, but this was driven by significant incentives.
- Average Sales Price: Dropped to $383,000 due to incentives.
- Gross Margin: Reduced by 17.5% as a result of price cuts.
The results highlight the challenges facing homebuilders. While Lennar successfully increased new orders, it did so at the cost of profitability, using incentives that lowered the average sales price and compressed margins.
Geopolitical Focus on TikTok Deal
A high-stakes discussion is scheduled for Friday between President Donald Trump and Chinese leader Xi Jinping regarding the future of TikTok in the United States. According to media reports, the call is set for 9 a.m. ET and will focus on finalizing a deal to allow the popular video app to continue its U.S. operations.
A potential framework for the deal would involve a consortium of companies led by Oracle (ORCL) managing the social media app. Earlier this week, President Trump signed an executive order extending the deadline for TikTok's Chinese parent company, ByteDance, to sell its U.S. assets to mid-December.
In response to the developments, Oracle shares saw a modest increase of about 1% in premarket trading.
