Stocks may move to the upside in early trading on Friday, regaining ground after moving notably lower over the two previous sessions. The major index futures are currently pointing to a modestly higher open for the markets, with the S&P 500 futures up by 0.2 percent.
The futures turned positive following the release of a highly anticipated Commerce Department report showing consumer prices in the U.S. increased in line with economist estimates in the month of April, while core consumer prices edged up by slightly less than expected.
The Commerce Department said its personal consumption expenditures (PCE) price index rose by 0.3 percent for the third straight month in April, matching economist estimates.
Meanwhile, the report said the core PCE price index, which excludes food and energy prices, crept up by 0.2 percent in April after rising by 0.3 percent in March. Economists had expected another 0.3 percent increase.
The annual rates of growth by the PCE price index and the core PCE price index were both unchanged from the previous month at 2.7 percent and 2.8 percent, respectively. The readings matched expectations.
The readings on inflation, which are said to be preferred by the Federal Reserve, were included in the Commerce Department’s report on personal income and spending.
The smaller than expected monthly increase in core prices may lead to renewed optimism about the outlook for interest rates, although the unchanged annual readings are likely to temper hopes for a near-term rate cut.
Just after the start of trading, MNI Indicators is due to release its report on Chicago-area business activity in the month of May.
The Chicago business barometer is expected to rise to 41.0 in May from 37.9 in April, but a reading below 50 would still indicate contraction.
After ending Wednesday’s session mostly lower, stock saw further downside during trading on Thursday. The major averages all finished the day firmly in negative territory, with the Dow once again falling to its lowest closing level in almost a month.
The Nasdaq and the S&P 500 fell to new lows for the session late in the day but regained some ground going into the close.
The Dow slid 330.06 points or 0.9 percent to 38,11.48, the Nasdaq slumped 183.50 points or 1.1 percent to 16,737.08 and the S&P 500 fell 31.47 points or 0.6 percent to 5,235.48.
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Friday. Japan’s Nikkei 225 Index jumped by 1.1 percent, while Hong Kong’s Hang Seng Index declined by 0.8 percent.
The major European markets have also turned mixed on the day. While the U.K.’s FTSE 100 Index has climbed by 0.6 percent, the French CAC 40 Index is marginally lower and the German DAX Index is down by 0.1 percent.
In commodities trading, crude oil futures are edging up $0.07 to $77.98 a barrel after tumbling $1.32 to $77.91 a barrel on Thursday. Meanwhile, after inching up $2.40 to $2,366.50 an ounce in the previous session, gold futures are rising $3.30 to $2,369.80 an ounce.
On the currency front, the U.S. dollar is trading at 156.88 yen versus the 156.82 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.0875 compared to yesterday’s $1.0832.
Business News
U.S. Stocks May Regain Ground Following Inflation Data
2024-05-31 12:51:05
