Last Updated: 4:10 PM EST
Stock indices finished today’s trading session in the green. The Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) gained 1.03%, 1.11%, and 1.64%, respectively. Earlier today, core PCE, which is the Fed’s preferred inflation metric, came in at 2.6% year-over-year and 0.2% month-over-month. In addition, yearly and monthly headline PCE figures were 2.5% and 0.1%, respectively. Although the annual core print was slightly above the 2.5% estimate, all of the other metrics were in line with expectations.
In addition, the University of Michigan released its results on consumer inflation expectations over the next five years. Consumers now expect inflation to be 3%, which is higher than the expected 2.9% and unchanged from the previous month.
Taking a look at consumer sentiment, results came in at 66.4, slightly beating the expected 66. This is a decrease compared to last month’s reading of 68.2. In addition, consumer expectations came in higher than expected. July saw a print of 68.8 versus the forecast of 67.2. This was also lower when compared to last month’s result of 69.6.
Furthermore, 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 2.8% in the third quarter.
First Published: 2:48 AM EST
U.S. futures inched higher on Friday morning as investors awaited the release of the U.S. Personal Consumption Expenditures (PCE) data, the Federal Reserve’s preferred inflation gauge, later today. Futures on the Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) were up by about 0.55%, 0.45%, and 0.34%, respectively, at 2:29 a.m. EST, July 26.
All three major indices ended yesterday’s trading session in negative territory. The Dow Jones, S&P 500, and Nasdaq Composite declined 0.2%, 0.5%, and 0.9%, respectively. Furthermore, benchmark indices are on track to finish the week in the red as investors continue to shift from mega-cap technology and artificial intelligence stocks to smaller-cap companies.
In major stock market news, Ford (F) tumbled 18.4% following the release of a mixed earnings report. Also, Edwards Lifesciences (EW) suffered the steepest decline among the S&P 500 companies, down 31.3% after it lowered its second-quarter revenue outlook. On the other hand, ServiceNow (NOW) gained 13.4% to reach a record high, on strong Q2 results.
After the bell yesterday, Deckers (DECK) soared 10.5% on strong quarterly results, while Dexcom (DXCM) plummeted 37% after issuing disappointing full-year guidance.
Traders are now looking forward to today’s PCE data. Experts predict headline inflation to have grown by 0.1% in June. Interestingly, the data point is pivotal in determining this year’s interest rate cut trajectory, particularly if inflation surpasses current expectations. Meanwhile, the five-year Consumer Inflation report is also scheduled for release today.
In key earnings due today, 3M (MMM), Bristol-Myers Squibb (BMY), Booz Allen (BAH), and Colgate-Palmolive (CL) are scheduled to release their quarterly results.
Meanwhile, the U.S. 10-year treasury yield was down at the time of writing, floating near 4.25%. At the same time, WTI crude oil futures trended higher, hovering near $78.29 per barrel as of the last check.
Elsewhere, European markets are expected to open on a muted note today. Investors are looking ahead to key corporate earnings and the U.S. PCE report.
Asia Pacific Markets Traded Mixed on Friday
Asia-Pacific indices traded on a mixed note today as investors evaluated Japan’s July inflation data and awaited the release of a key U.S. inflation reading.
At the time of writing, Hong Kong’s Hang Seng and China’s Shenzhen Component indices were up 0.19% and 1.04%, respectively. However, China’s Shanghai Composite index declined 0.25%. Further, Japan’s Nikkei and Topix indices closed lower by 0.6% and 0.4%, respectively.
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