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Stock Futures Slide Amid Release of Key Inflation Data

There is a deluge of economic data this morning

Deputy Editor
Jun 30, 2022 at 9:18 AM
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Dow Jones Industrial Average (DJIA) futures are down 300 points ahead of the open, while futures on the Nasdaq-100 Index (NDX) fall triple digits as well. The S&P 500 Index (SPX) is posting more modest premarket losses, but is on track for its worst first half of the year since 1970.

There is a wealth of economic data to unpack this morning, starting with initial weekly jobless claims falling to 231,000 for last week, while consumer spending increased a lower-than-expected 0.2% in May. Most watched, however, is personal consumption expenditures (PCE) data -- the Fed's favored inflation measurement. The PCE inflation index rose 0.6% in May and 6.3% year-over-year, while core PCE inflation index jumped 0.3% in May and 4.7% year-over-year. 

Continue reading for more on today's market, including:

  • The best 25 stocks to own next month. 
  • Why Marathon Oil is one of the worst stocks to own next month.  
  • Plus, WBA, RH, and AYI react to their earnings results. 

Futures June30

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw 852,590 call contracts and 667,005 put contracts traded on Wednesday. The single-session equity put/call ratio rose to 0.78, and the 21-day moving average stayed at 0.64.
  2. Walgreens Boots Alliance Inc (NASDAQ:WBA) is down 2.3% premarket, despite the company's upbeat fiscal third-quarter results, as strong demand in the U.K. offset weakened U.S. sales. WBA is down 21.6% year-to-date. 
  3. RH (NYSE:RH) is down 9% in electronic trading, after the company lowered its full-year outlook. No fewer than nine analysts slashed their price targets in response, with the lowest from UBS to $240 from $350. 
  4. Acuity Brands Inc (NYSE:AYI) is brushing off the broader-market slump in electronic trading, up 2.7% after a strong fiscal third-quarter report. The company is also increasing its board to 11 members from 10. Year-to-date, the equity is down 26.4%. 
  5. Today will bring real disposable income and real consumer spending, and the Chicago PMI.

buzzjune30

European Markets Eye Inflation Data out of France

Asian markets were mostly lower on Thursday, though upbeat factory data out of China lifted stocks in the region, and in response the Shanghai Composite rose 1.1%. On the other hand, industrial production levels in Japan dropped 7.2% in May, causing the Nikkei to shed 1.5%. Elsewhere, the Hong Kong Hang Sang lost 0.6%, and the South Korean Kospi dropped 1.9%.

European markets are also falling, weighed by blanketing anxieties over and impending recession. These fears were stoked by preliminary inflation data out of France, which showed the consumer price index (CPI) rising 5.8% in June, compared to May’s 5.2% year-over-year rise. In response, the French CAC 40 and German DAX are both down 2.7%, while the London FTSE 100 has shed 2% so far.

 

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