Stock futures choppy ahead of consumer inflation reading
All eyes will be on the latest consumer price report when it is released before the opening bell
This is when investors will see more stability in the market: Kenny Polcari
Financial experts Kenny Polcari, Phil Blancato and Mark Newton provide insight on investing in the stock market on 'Making Money with Charles Payne.'
U.S. equity futures traded cautiously ahead of a much anticipated key reading on inflation.
The major futures indexes suggest a mixed opening when trading begins on Wall Street.
Traders work on the floor at the New York Stock Exchange in New York. (AP Photo/Seth Wenig)
Oil prices fell on Friday, but remained near three-month highs on concerns over new COVID-19 lockdown measures in Shanghai.
U.S. West Texas Intermediate crude traded around $120 a barrel and was set for a seventh straight weekly increase.
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The price of gasoline in the U.S. continues a slow crawl toward $5 a gallon. The price on Friday morning was $4.986, according to AAA.
The yield on the 10-year Treasury was at 3.04%.
The big economic event of the week comes before the opening bell when investors will react to the broadest and most popular measure of price inflation in retail goods and services.
INFLATION LIKELY REMAINED SCORCHING HOT IN MAY
The Bureau of Labor Statistics is expected to say the consumer price index rose 0.7% month-over-month in May. That’s up from a 0.3% increase in April. On a year-over-year basis watch for prices to jump 8.3% in May, unchanged from April’s rise.
If you factor out volatile food and energy costs, the core consumer price index is anticipated to rise 0.5% for the month.
JOBLESS CLAIMS UNEXPECTEDLY ROSE TO HIGHEST LEVEL SINCE JANUARY LAST WEEK
The University of Michigan will also release its preliminary index of consumer sentiment for June. The Refinitiv estimate is 58.0, down from May’s final reading of 58.4.
Bitcoin traded around $30,000.
Shares were mostly lower in Asia on Friday, with only Shanghai rising. Tokyo's Nikkei 225 index lost 1.5%, Hong Kong's Hang Seng slipped 0.3% and China's Shanghai Composite index added 1.4% after the government reported that consumer price inflation remained muted, at 2.1%, in May.
Benchmarks in Europe declined on Thursday when the European Central Bank said it would raise interest rates next month for the first time in more than a decade. Another hike is set for September, possibly by double July’s increase, and the central bank will also halt its bond-buying program next month.
The wide expectation is that the Fed will raise its key interest rate in the U.S. next week by half of a percentage point, the second straight increase of double the usual amount. Investors expect a third to hit in July.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 43870.35 | +461.88 | +1.06% |
| SP500 | S&P 500 | 5948.71 | +31.60 | +0.53% |
| I:COMP | NASDAQ COMPOSITE INDEX | 18972.420086 | +6.28 | +0.03% |
On Thursday, the S&P 500 dropped 2.4% to close at 4,017.82, while the Dow Jones Industrial Average sank 1.9% to 32,272.79. The Nasdaq composite tumbled 2.8% to 11,754.23.
Shares of Stitch Fix, the online personalized styling service firm plunged 16% after hours. The company is cutting 330 positions. That is a reduction of about 15% of salaried workers. The company forecasted net revenue for the fourth quarter that is short of estimates.
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A report showed slightly more U.S. workers filed for unemployment last week than economists expected. That’s a potentially negative signal, but the overall number still remains low.
The Associated Press contributed to this report.