Stock futures poised for gains to end the week
Investors will get to see next week how the Fed is reading the latest inflation barometer and what monetary policy changes, if any, the central bank may consider
S&P year-end target could be over 4,500: BMO strategist
BMO Capital Markets chief investment strategist Brian Belski on the markets, inflation and Big Tech stocks.
U.S. equity futures were trading higher the morning after the S&P 500 notched another record high despite a surge in consumer prices in May.
The major futures indexes suggest a gain of 0.2% when the opening bell rings.
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The lone economic report to finish the week will be the University of Michigan's preliminary index of consumer sentiment for June. The Refinitiv estimate is 84.0, a little more than a point above May’s final reading of 82.9.
On Thursday, Wall Street logged gains while bond yields mostly fell despite the much-anticipated report showing consumer prices rose 5% in May, the biggest year-over-year increase since 2008 and more than economists had expected.
CONSUMER PRICES SURGE 5% ANNUALLY, MOST SINCE AUGUST 2008
Investors also reacted positively to more data that showed continued improvement in the labor market.
The worry is that if signs of inflation persist, central banks may move to withdraw stimulus from the economy to ease price pressures.
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Investors will get to see next week how the Fed is reading the latest inflation barometer and what monetary policy changes, if any, the central bank may consider. The Fed's policymaking committee is due to deliver its latest economic and interest rate policy update next Wednesday.
In Europe, London's FTSE added 0.6%, Germany's DAX rose 0.2% and France's CAC was 0.6% higher.
In Asia, Tokyo's Nikkei 225 index was unchanged, the Hang Seng in Hong Kong rose 0.4% and China's Shanghai Composite index slipped 0.6%.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 43435.59 | -315.27 | -0.72% |
| SP500 | S&P 500 | 5874.46 | -74.71 | -1.26% |
| I:COMP | NASDAQ COMPOSITE INDEX | 18710.672349 | -396.98 | -2.08% |
On Thursday, the S&P 500 gained 0.5% to 4,239.18, just beating its previous all-time high set on May 7th. The Dow Jones Industrial Average edged up 0.1% to 34,466.24. The Nasdaq Composite rose 0.8%, to 14,020.33, while smaller-company stocks lagged the broader market. The Russell 2000 index fell 0.7% to 2,311.41.
A significant share of May's rise in consumer prices was tied to the sale of used cars, which is largely attributed to purchases by rental car companies beefing up their fleets as people return to traveling.
Markets will be tuning in this weekend for any developments at the summit of the Group of Seven in Britain. At the top of the leaders’ agenda is helping countries recover from the coronavirus pandemic, which has killed more than 3.7 million people and wrecked economies.
The G-7 leaders are meeting for three days at a British seaside resort. It's the first such gathering since before the pandemic.
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In other trading, benchmark U.S. crude oil added 14 cents to $70.43 per barrel in electronic trading on the New York Mercantile Exchange. It gained 33 cents to $70.29 per barrel on Thursday.
Brent crude, the international standard, added 13 cents to $72.65 per barrel.
The Associated Press contributed to this report.