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Deere earnings, consumer sentiment — What you need to know in markets on Friday

Myles Udland
Markets Reporter

China sent U.S. stocks higher on Thursday.

Markets finished in the green on Thursday after news late Wednesday said China and the U.S. would hold lower-level trade talks later this month; this report sent sock futures higher Wednesday night.

Notable U.S. gainers on the news were Boeing (BA) and Caterpillar (CAT), Dow members that have become barometers of the markets’ assessment of the state of U.S. trade relations. Boeing’s rise Thursday added around 90 points to the blue chip index.

Walmart (WMT) shares, which gained more than 9% on Thursday after reporting their best sales growth in a decade, were also a boost to the Dow, which rose 396 points, or 1.6%.

The S&P 500 was up 0.8%, lagging the Dow, while the Nasdaq was up 0.4% as tech stocks lagged.

Tech stocks are also likely to set a negative tone for markets on Friday, as chipmaker Nvidia (NVDA) reported earnings after the market close on Thursday that beat expectations for the second quarter but gave a more downbeat forecast for the current quarter than investors had forecast.

The company also said sales of chips by cryptocurrency miners had fallen well short of expectations, totaling $18 million in the second quarter against the company’s expectations for $100 million in sales to this segment. Nvidia also said it expects no revenue from crypto miners in the future.

On Friday, investors will get a slower earnings and economic calendar to finish off the week, with Deere & Company (DE) set to be the only S&P 500 member reporting results. This report will be closely watched by markets for signs of how tariffs and the global economic environment is impacting the agricultural giant.

Deere & Company earnings on Friday morning will be one of the key events for investors to end the week. (AP Photo/Gene J. Puskar)

In its May earnings call, Deere management said that, “While global trade concerns weigh on farmers, overall sentiment is holding as commodity prices move upward and equipment demand shows broad-based improvement.”

Wall Street expects Deere to report adjusted earnings per share of $2.75 on revenue of $9.2 billion, according to estimates from Bloomberg.

And on the economic data side, the University of Michigan’s preliminary reading on consumer sentiment in August is set to be the highlight, with the July leading index of economic indicators also set for release.

Myles Udland is a writer at Yahoo Finance. Follow him on Twitter @MylesUdland