NASDAQ 100, Dow Jones, S&P 500: Edging Higher Ahead of Key PCE Inflation Report

Highlights

• Stock futures edge higher before inflation data release.
• Mixed after-hours trading with Intel and Roku gains, Ford dips.
• Wall Street ends 13-day winning streak, but Dow and Nasdaq show weekly gains.

Overview

Stock futures are edging higher on Friday as investors awaited new inflation data scheduled for release. Dow Jones Industrial Average futures were up 57 points (0.16% higher), S&P 500 futures gained 0.38%, and Nasdaq 100 futures advanced 0.77%.

Mixed Pre-Market Trade

After-hours trading saw mixed reactions to earnings reports. Intel’s stock surged over 7% on positive investor sentiment regarding its return to profitability. Similarly, Roku climbed 8% after surpassing Wall Street’s expectations on both revenue and profit. On the other hand, Ford Motor shares dipped approximately 1.4% despite beating estimates and raising guidance. The decline was attributed to a delay in electric vehicle adoption due to increased costs.

PCE Inflation Report on Tap

Investors are closely monitoring the June data for the personal consumption expenditures price index, a key inflation indicator followed by the Federal Reserve. Economists expect the core PCE to rise by 0.2% from the previous month and 4.2% year-on-year. The central bank recently raised interest rates, making this inflation data particularly relevant.

Dow Ends 13-Session Winning Streak

Wall Street had a recent losing session, ending the Dow’s 13-day winning streak, which hadn’t been seen since 1987. Both the S&P 500 and Nasdaq Composite closed around 0.6% lower. However, the Dow and Nasdaq are on track for narrow weekly gains, with the former up 0.16% and the latter up 0.12%. The S&P 500 remains flat with only a 0.02% gain for the week.

Economic News, Earnings to Set the Tone

Furthermore, investors are paying attention to data on employment costs, personal income, consumer spending, and consumer sentiment. The corporate earnings season continues, with Procter & Gamble expected to report its quarterly earnings before the bell. Analysts anticipate earnings per share of $1.32 and revenue of $19.98 billion.

Short-Term Outlook:  Strong PCE Numbers Could Spur Sell-Off

In conclusion, the market awaits crucial inflation data, hoping for insights into the Federal Reserve’s future actions. Mixed earnings reports and the end of a significant Dow winning streak add to the current market uncertainties. As investors closely observe economic indicators and corporate earnings, Wall Street remains cautiously optimistic about the week’s overall performance.