OPENING CALL

Stock futures were on the rise Friday as investors returned to stocks exposed to artificial intelligence after a few turbulent weeks.

Nasdaq-100 futures were up more than 1%, with Amazon climbing 10% after it reported accelerating cloud-computing sales.

"We remain constructive on the AI growth story, but believe investors should manage concentration risk by broadening their exposure to defensive tech stocks," UBS said.

Meanwhile, oil prices were steady and remained on track for a monthly surge of around 20% after fresh signs of efforts for peace in the Middle East.

Elsewhere, the Bank of Japan kept monetary policy unchanged Friday

as it assesses how its latest interest-rate increase is affecting the economy and price trends.

The dollar recovered from a six-week low following possible market intervention by Japanese officials to support the struggling Yen. Investors remained on watch for further intervention Friday.

Investors will also await U.S. second-quarter employment cost index data. Results from ExxonMobil, AbbVie and Chevron are due before the opening bell.

Stocks to watch

Amazon jumped over 12% in premarket trading after the company reported accelerating cloud-computing sales and boosting its capital-spending forecast.

Apple fell over 7% after the company's September-quarter outlook failed to impress investors.

ExxonMobil, Chevron, Enbridge: The companies are among the major energy names reporting their second-quarter results before the opening bell. Pharmaceutical companies AbbVie and Moderna are also set to report before markets open.

NatWest climbed following higher quarterly earnings and a higher full-year outlook.

Roblox fell more than 16% premarket. It projected slower revenue growth as it invests in AI and focuses on platform safety.

SK Hynix, Samsung: Shares of both chipmakers surged over 25% in Asian trading, staging a strong recovery after a turbulent week. Peers Marvell, Intel, Micron, also moved higher.

Watch For:

Employment Cost Index for 2Q; Chicago Business Barometer - ISM-Chicago Business Survey - Chicago PMI for July; University of Michigan Final Consumer Survey for July; Canada GDP for May; Chevron 2Q earnings; Enbridge 2Q earnings; Exxon 2Q earnings

Today's Top Headlines/Must Reads:

- Ford and GM Attempts to Go Beyond Cars Deserve Skepticism

- Tankers Are Being Blown Out of the Water. See How Mideast Strikes Are Piling Up.

- A Simple Answer to AI Job Loss: Tax Capital, Not Labor

MARKET WRAPS

Forex:

The dollar recovered

after reaching a six-week low against a basket of currencies Thursday as the yen hands back gains following the Bank of Japan's decision to leave interest rates unchanged.

The euro fell. The currency could benefit if the dollar eases further in response to upcoming U.S. data, ING said.

Bonds:

Treasury yields declined in early trade, reversing Thursday's increases that saw the 30-year yield hit a 19-year high, according to Tradeweb data.

The substantial rise in Treasury yields across maturities

was likely the most critical factor arguing against any policy moves towards raising coupon [note, bond] supply, or even simply shifting forward guidance, HSBC said.

Energy:

Oil prices were steady, with Brent crude around $81 a barrel.

Metals:

Gold prices slipped on Friday, but were headed for their first monthly gain in five months as investors closely monitor developments in the Middle East.

"Precious metals recovered as the dollar weakened after the softer GDP print, but the move was not fully convincing given the lack of a clear decline in Treasury yields," said Sucden Financial.

Copper

Copper edged higher in early trade. Sentiment across the base metal sector was boosted by the Fed leaving rates unchanged, while signs of short-term tightness also provided some support, ANZ Research said.

Iron ore

Iron ore declined in early trading. The fall is likely due to dampened expectations of Chinese stimulus that would lend support to steel demand, Commonwealth Bank of Australia said.

   TODAY'S TOP HEADLINES 

Ford and GM Attempts to Go Beyond Cars Deserve Skepticism

Ford Motor and General Motors are looking beyond cars. If history rhymes, investors could come to regret their wandering eyes. Will this time be different?

In May, Ford's shares surged as much as 45%, adding nearly $23 billion of market value, in the weeks after it formally announced Ford Energy, a grid-scale battery-storage business that will serve the power needs of artificial-intelligence hyperscalers and utilities. Its shares have since moderated, but are still up more than 20% since the Ford Energy launch. The company is also re-entering the defense sector, having recently won a contract to build tactical trucks for the U.S. Army.

Tesla Weighs Sale of China Business to Pave Way for Potential SpaceX Merger

Elon Musk designed Tesla's China business to be easily separated from its U.S. business because of geopolitical tensions. It might also come in handy if he proceeds with a SpaceX merger.

Musk in recent years instructed Tesla executives to organize the company with a "laser" between its U.S. and China businesses, according to people familiar with the planning. He wanted to ensure that in the event of geopolitical strife between the two countries, at least the U.S. half of Tesla would survive.

Universal Music Shares Plunge After Subscriptions, Streaming Growth Underwhelm

Shares in Universal Music Group plummeted after growth in subscriptions and streaming revenue disappointed investors.

The music company behind Taylor Swift, Lady Gaga, and Bad Bunny booked second-quarter revenue of 3.29 billion euros, or $3.79 billion. That was more than 13% higher on year excluding currency movements and slightly higher than a Visible Alpha consensus of 3.27 billion euros.

Sony Profit Jumps More Than Expected, Raises Guidance

Sony Group raised its annual earnings forecasts after first-quarter net profit came in stronger than expected, supported by a rise in earnings from its music and image-sensor businesses.

The Japanese electronics and entertainment company said Friday that net profit climbed 32% from a year earlier to 342.16 billion yen, equivalent to $2.15 billion, for the three months ended June. That beat the estimate of Yen262.6 billion in a poll of analysts by data provider Visible Alpha.

Eurozone Inflation Rebounds as High Energy Prices Persist

Inflation in the eurozone rose this month further above the European Central Bank's target, as energy costs accelerated again and services prices firmed, with the future path of price rises heavily dependent on developments in the Middle East.

Annual consumer-price inflation in the 21-nation eurozone was 2.9% in July, up from 2.8% in June, the European Union's statistics agency said Friday. That was a little above the 2.8% expected by a consensus of economists polled by The Wall Street Journal.

Bank of Japan Stands Pat But Weak Yen Threatens Inflation Outlook

TOKYO-The Bank of Japan kept monetary policy unchanged as it assesses the impact of its recent interest-rate increase, though the central bank's governor signaled growing concerns about inflation overshooting its goal.

As widely expected, the central bank maintained its policy rate at 1.0% at the end of its two-day meeting on Friday. It raised interest rates to a three-decade high in June, citing the possibility that underlying inflation could exceed its 2% target.

China's Factory Activity Gauge Unexpectedly Signals Contraction

A closely watched indicator of Chinese manufacturing unexpectedly signaled a contraction in activity for the first time in five months as factories were hit by extreme weather, raising pressure on Beijing to support growth.

The official manufacturing purchasing managers index dived to 49.2 in July from June's 50.3, according to data released Friday by the National Bureau of Statistics.

U.S. Says Hamas Has Agreed to Broad Plan to Disarm

Hamas and other Palestinian militant groups agreed to a plan that, if followed, would see the groups disarm and lose power in the Gaza Strip as long as Israel withdraws from the enclave, U.S. officials said.

The officials, speaking to reporters Thursday evening, said the agreement is the start of an indefinite, multiphase process to end Hamas's rule in Gaza and rebuild the enclave. The officials acknowledged many challenges ahead, such as verifying the Palestinian groups' compliance and ensuring that a skeptical Israeli government doesn't scuttle any progress.

The U.S. Liberated Kuwait but Now Struggles to Protect It From Iran

In the decades since Kuwait's liberation in the first Gulf War, the U.S. has used the oil-rich emirate as one of the Army's biggest logistics hubs in the world, hosting thousands of troops, Abrams tanks and heavy artillery.

The American military footprint gave Kuwait a sense of security. Never again could a bigger, more powerful neighbor threaten it.

Panama Infuriated China. Now It's Paying the Price.

Panama is paying a price for its involvement in the great superpower competition between China's government and the Trump administration.

In January, under heavy pressure from Washington, Panama's supreme court handed President Trump a victory for his security ambitions in Latin America and dented China's influence in the region when it ousted Hong Kong's CK Hutchison from two ports the company operated at either end of the country's canal.

Migrants Perish Pouring Into Tiny Spanish Territory

At least 10 people died Thursday after thousands of migrants poured into the tiny Spanish territory of Ceuta from neighboring Morocco, overwhelming authorities and posing a political problem for Prime Minister Pedro Sánchez.