Last Updated: 4:08 PM EST
Stock indices finished today’s trading session in the red despite signs of cooling inflation. The Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) fell 0.54%, 0.41%, and 0.12%, respectively. In fact, Core PCE, which is the Fed’s preferred inflation metric, came in at 2.6% year-over-year and 0.1% month-over-month. In addition, yearly and monthly headline PCE figures were 2.6% and 0%, respectively. All of these metrics were in line with expectations and lower than last month’s results.
Furthermore, the University of Michigan released its results on consumer inflation expectations over the next five years. Consumers now expect inflation to be 3%, which was lower than the anticipated 3.3% and lower when compared to the previous month.
Taking a look at consumer sentiment, results came in at 68.2, which was higher than the expected 65.6. However, this was a decrease compared to last month’s reading of 69.1. In addition, consumer expectations came in higher than expected. June saw a print of 69.6 versus the forecast of 67.6. This was also an increase compared to last month’s result of 68.8.
Moreover, the Atlanta Federal Reserve updated its latest GDPNow reading, which allows it to estimate GDP growth in real-time. The “nowcast” becomes more accurate as more economic data is released throughout the quarter. Currently, it estimates that the economy will expand by about 2.2% in the second quarter. This is lower than its previous estimate of 2.7%.
Today’s data seems to suggest that maybe lower inflation will come at the cost of lower GDP growth, which would ultimately impact corporate earnings growth and share prices.
First Published: 2:58 AM EST
U.S. futures hovered near the flatline on early Friday morning as investors awaited the release of the U.S. Personal Consumption Expenditures (PCE) data later today. Futures on the Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) were up by about 0.45%, 0.3%, and 0.05%, respectively, at 2:46 a.m. EST, June 28.
Regarding today’s PCE report, experts predict headline inflation to have remained flat sequentially in May, while the annualized reading is pegged at 2.6%. It should be noted that the data point is pivotal in determining this year’s interest rate cut trajectory.
In major stock market news, Walgreens Boots Alliance (WBA) tumbled over 22% in the regular trading session after it cut full-year earnings guidance. Further, in the extended trading session, shares of Nike (NKE) tanked over 12% after the company reported mixed Q4 results.
Meanwhile, the U.S. 10-year treasury yield is down, floating near 4.3% at the time of writing. Also, the WTI crude oil futures are trending lower, hovering near $82.26 per barrel as of the last check.
Elsewhere, European markets are expected to open higher today, with investors looking forward to the release of key inflation data by several economies, including the U.S. and the Eurozone.
Asia Pacific Markets Traded Higher on Friday
Most of the Asia-Pacific indices were trading higher today as investors evaluated Japan’s inflation and industrial production data points. Also, traders are looking ahead to key U.S. inflation readings.
At the time of writing, Hong Kong’s Hang Seng index and China’s Shanghai Composite index were up 0.14% and 0.56%, respectively. Further, Japan’s Nikkei and Topix indices climbed by 0.61% and 0.57%, respectively. However, China’s Shenzhen Composite Index was down 0.11%.
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