Key inflation data rolled in, rising more than expected
Looking to close out a winning week on a high note, stock futures are rising this morning following a session marked by upbeat labor market data. Dow Jones Industrial Average (DJI) futures were last seen up around 150 points, even after the core Personal Consumption Expenditures (PCE) prices index, a key U.S. inflation gauge, rose more than expected year-over-year. The PCE rose 3.1% in April, compared to the projected 2.9% increase -- hitting its highest level in nearly 13 years. Meanwhile, S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) futures were both noticeably higher, with the former sitting less than 1% from record highs.
Continue reading for more on today's market, including:
- RH stock may be worth considering ahead of earnings.
- Can J.M. Smucker notch its fifth-straight quarterly win?
- Plus, Big Lot stock dips despite upbeat results; Boeing's latest quality control issues; and one "meme" stock soaring up the charts.
5 Things You Need to Know Today
- The Cboe Options Exchange (CBOE) saw more than 2 million call contracts traded on Thursday, and 839,497 put contracts. The single-session equity put/call ratio fell to 0.41 and the 21-day moving average stayed at 0.52.
- Big Lots, Inc. (NYSE:BIG) stepped into the earnings confessional this morning, reporting better-than-expected first-quarter earnings and revenue. In addition, comparable-store sales rose more than Wall Street projected. Though the shares initially rose to start the morning, they're now pulling back, last seen down 2.2% in pre-market trading. Still, year-to-date, BIG boasts a 50.3% lead.
- The shares of Boeing Co (NYSE:BA) are down 1.2% ahead of the open, putting a dent in its 17.1% 2021 rise. The reason for today's dip is the halting of deliveries of its 787 Dreamliner, as federal regulators requested more information about proposed solutions regarding quality control issues.
- Movie theater operator AMC Entertainment Holdings Inc (NYSE:AMC) is surging ahead of the open, up 12.5% in electronic trading. The "meme" stock has attracted much attention from retail traders on websites like Reddit, and is poised to lock in its fifth-straight day of gains. Year-to-date, the security already sports an incredible 1,150.9% lead.
- A jam-packed close to the week, today features personal income, consumer spending, and core inflation data. An advance report on trade in goods deficit, the Chicago purchasing managers' index (PMI), and the consumer sentiment index are on the docket too.
European Markets Eye Weekly Wins on Euro Zone Data
Asian markets were mostly higher on Friday, following overnight gains in Wall Street. Leading the pack was Japan’s Nikkei, which added 2.1%, followed by South Korea’s Kospi 0.7% pop. Meanwhile, Hong Kong’s Hang Seng finished slightly above breakeven with a 0.04% gain, after the successful public trading debut of JD Logistics. Elsewhere, China’s Shanghai Composite registered a 0.2% loss.
European markets are also set to close out the winning week on a high note, thanks to encouraging data out of the euro zone that showed economic sentiment in the region notched a three-year high in May. Meanwhile, the French economy has slipped into a technical recession, due to weak construction activity. Investors are also keeping an eye on infrastructure talks in Washington, D.C., and digesting British Prime Minister Boris Johnson’s comments that the lifting of Covid-19 restrictions in the country may be delayed due to surging infections in the past week. At last check, France’s CAC 40 is up 0.7%, the German DAX is up 0.6%, and London’s FTSE 100 has added 0.3%.