The major U.S. index futures are pointing to a roughly flat opening on Friday after stocks ended the previous session modestly higher.
Activity in the markets is likely to be relatively light on the day, as many traders will be looking to get a head start on the Christmas weekend.
Following the lackluster performance seen in the previous session, stocks saw modest strength during trading on Thursday. The major averages all moved to the upside, although buying interest was somewhat subdued.
The major averages closed in positive territory but well off their highs of the session. The Dow climbed 55.64 points or 0.2 percent to 24,782.29, the Nasdaq edged up 4.40 points or 0.1 percent to 6,965.36 and the S&P 500 rose 5.32 points or 0.2 percent to 2,684.57.
Optimism about the economic impact of the Republican tax reform bill contributed to the strength on Wall Street after GOP lawmakers managed to send the legislation to President Donald Trump's desk on Wednesday.
The reaction to the passage of the bill has been somewhat subdued thus far, however, as traders question if the potential impact of the legislation has already been priced into the markets.
Traders were also digesting a slew of economic data, including a report from the Labor Department showing a bigger than expected increase in first-time claims for U.S. unemployment benefits in the week ended December 16th.
The report said initial jobless claims climbed to 245,000, an increase of 20,000 from the previous week's unrevised level of 225,000. Economists had expected jobless claims to rise to 234,000.
A separate report from the Commerce Department showed economic activity in the U.S. unexpectedly grew at a slightly slower than previously estimated rate in the third quarter.
The report said real gross domestic product surged up by 3.2 percent in the third quarter compared to the previously estimated 3.3 percent jump. Economists had expected the pace of growth to be unrevised.
Despite the downward revision, the GDP growth seen in the third quarter still reflects a modest acceleration from the 3.1 percent increase in the second quarter.
Meanwhile, the Philadelphia Federal Reserve released a report showing an unexpected rebound in the pace of growth in regional manufacturing activity in the month of December.
The Philly Fed said its diffusion index for current general activity climbed to 26.2 in December from 22.7 in November, with a positive reading indicating growth in regional manufacturing activity. Economists had expected the index to drop to 21.5.
A report from the Conference Board also showed a slightly bigger than expected increase by its index of leading economic indicators.
The Conference Board said its leading economic index climbed by 0.4 percent in November after jumping by 1.2 percent in October. Economists had expected the index to rise by 0.3 percent.
Energy stocks saw substantial strength on the day, moving higher along with the price of crude oil. Reflecting the strength in the energy sector, the Philadelphia Oil Service Index spiked by 3.5 percent, the NYSE Arca Natural Gas Index shot up by 2.6 percent and the NYSE Arca Oil & Gas Index jumped by 1.8 percent.
Significant strength was also visible among financial stocks, with the Dow Jones Banks Index climbing by 1.5 percent and the NYSE Arca Broker/Dealer Index rising by 1.1 percent.
Steel, airline and housing stocks also saw strength on the day, while utilities, semiconductor, and electronic storage stocks showed notable moves to the downside.
PG&E (PCG) led the utilities sector lower after suspending its dividend due to uncertainty related to potential liabilities associated with the October wildfires in Northern California.
Commodity, Currency Markets
Crude oil futures are sliding $0.37 to $57.99 a barrel after climbing $0.27 to $58.36 a barrel on Thursday. Meanwhile, after rising $1 to $1,270.60 an ounce in the previous session, gold futures are edging up another $1 to $1,271.60 an ounce.
On the currency front, the U.S. dollar is trading at 113.39 yen compared to the 113.33 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.1853 compared to yesterday's $1.1874.
Asia
Asian stocks closed mostly higher on Friday, although trading volume remained light ahead of the Christmas weekend. Underlying sentiment remained supported by higher commodity prices, encouraging economic reports from the U.S. and passage of the landmark tax reform bill.
Japanese shares closed slightly higher in quiet pre-holiday trading. The Nikkei 225 Index inched up 36.66 points or 0.2 percent to 22,902.76, while the broader Topix index closed 0.4 percent higher at 1,829.08.
Fast Retailing rose 0.8 percent on bargain hunting after falling 1.4 percent the previous day. Kobe Steel declined 2.4 percent after demoting three executives, saying they were aware of data falsification at the company.
Pharmaceutical firm Eisai plummeted 14.9 percent after a drug to treat Alzheimer's disease being developed by the company in collaboration with Biogen failed to meet the main goal of a mid-stage trial.
Australian shares hit their highest level in nearly a decade, with firm overnight cues from Wall Street and Europe as well as rising oil prices supporting underlying sentiment.
The S&P/ASX 200 Index hit its highest level since January of 2008 earlier in the day before paring gains to end up 9.30 points or 0.2 percent at 6,069.70. The broader All Ordinaries Index closed 0.2 percent higher at 6,167.30.
Banks Commonwealth, NAB and Westpac rose between 0.3 percent and 0.7 percent in a rising interest rate environment.
Mining heavyweights BHP Billiton and Rio Tinto rose about 1 percent, while Wesfarmers fell 1 percent after announcing the sale of a Queensland coalmine to U.S. miner Coronado Coal Group for A$700 million.
Seoul stocks rebounded a little bit after recent heavy losses on concerns over the corporate earnings season. The benchmark Kospi gained 10.71 points or 0.4 percent to finish at 2,440.54.
Meanwhile, China's Shanghai Composite Index dipped 2.70 points or 0.1 percent to 3,297.36, dragged down by financial and consumer staple stocks. Hong Kong's Hang Seng Index climbed 210.95 point or 0.7 percent to 29,578.01.
Europe
European stocks have moved lower on Friday as fresh political turmoil in Spain dented investor sentiment heading into the long holiday weekend. Consumer confidence figures from Germany and U.K. GDP data topped forecasts, helping limit regional losses.
While the U.K.'s FTSE 100 Index has dipped by 0.2 percent, the German DAX Index is down by 0.3 percent and the French CAC 40 Index is down by 0.4 percent.
German consumer confidence is set to improve slightly in January, survey data from market-research group GfK showed.
The forward-looking consumer sentiment index rose to 10.8 for January from 10.7 in December. The score was forecast to remain unchanged at 10.7.
The U.K. economy grew as initially estimated in the third quarter, data from the Office for National Statistics showed.
Gross domestic product expanded 0.4 percent sequentially in the third quarter, faster than the 0.3 percent growth seen in the first two quarters of 2017.
German industrial conglomerate ThyssenKrupp has moved to the downside after it reached a collective agreement with trade union IG Metall on the planned merger of its European steel business with India's Tata Steel.
U.S. Economic Reports
New orders for U.S. manufactured durable goods showed a notable increase in the month of November, according to a report released by the Commerce Department.
The Commerce Department said durable goods orders surged up by 1.3 percent in November after falling by a revised 0.4 percent in October.
The increase in orders came in below economist estimates for a 2.0 percent jump, although the revised drop in the previous month was much smaller than the 0.8 percent decrease that had been reported.
Excluding a rebound in orders for transportation equipment, durable goods orders edged down by 0.1 percent in November after spiking by a revised 1.3 percent in October.
A separate report released by the Commerce Department showed a smaller than expected increase in U.S. personal income in the month of November, while personal spending climbed by more than expected.
The Commerce Department said personal income rose by 0.3 percent in November after climbing by 0.4 percent in October. Economists had expected another 0.4 percent increase.
Meanwhile, the report said personal spending climbed by 0.6 percent in November after edging up by 0.2 percent in October. Spending had been expected to rise by 0.5 percent.
At 10 am ET, the Commerce Department is scheduled to release its report on new home sales in the month of November. New home sales are expected to slump by 4.7 percent.
The University of Michigan is also due to release its revised report on consumer sentiment in the month of December at 10 am ET.
The consumer sentiment index for December is expected to be upwardly revised to 97.1 from the preliminary reading of 96.8.
Stocks In Focus
Shares of Nike (NKE) are moving lower in pre-market trading after the athletic apparel and footwear giant reported better than expected fiscal second quarter earnings but a drop in gross margins.
Wireless communications company CalAmp (CAMP) is also seeing pre-market weakness despite reporting fiscal third quarter results that exceeded analyst estimates.
On the other hand, shares of Cintas (CTAS) are moving to the upside in pre-market trading after the uniform rental company reported better than expected fiscal second quarter results and raised its full-year guidance.
Cancer drug maker Ignyta (RXDX) is likely to spike higher after agreement to be acquired by Roche for $1.7 billion or $27 per share.
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