Consumer spending rose slightly in August
Stock futures are cautiously higher on Friday, despite hotter-than-expected August inflation data. Specifically, the Personal Consumption Expenditures (PCE) price index rose 0.3% in August, and 6.4% year-over-year, while the core PCE price index gained 0.6% for the month and 5% for the year. Meanwhile, consumer spending rose 0.4% last month.
This data follows the S&P 500 Index's (SPX) lowest close of 2022 at the conclusion of yesterday's session, while today also marks the last day of the month and the third quarter. Not only are the major benchmarks pacing for their sixth weekly loss in seven, they're heading for substantial monthly and quarterly losses as well.
Continue reading for more on today's market, including:
- Read these tips for bears in a bleak market.
- Is this struggling software stock worth buying?
- Plus, Nike slumps on increased inventory; pharmaceutical stock pops after ALS drug approval; and unpacking VOYA's bull note.
5 Things You Need to Know Today
- The Cboe Options Exchange (CBOE) saw more than 1.06 million call contracts and 976,191 put contracts traded on Thursday. The single-session equity put/call ratio rose to 0.91, while the 21-day moving average stayed at 0.68.
- Nike Inc (NYSE:NKE) was last seen 11.2% lower premarket, and furthering its 42.8% year-to-date losses. Despite reporting better-than-expected earnings and revenue for the fiscal first-quarter, the blue-chip apparel maker's inventories increased by 44%, leading the company to say it would offer more discounts around the holiday season. No less than 15 analysts cut their price targets in response.
- A new ALS drug from Amylyx Pharmaceuticals Inc (NASDAQ:AMLX) that slows the disease's progression and extends survival just received U.S. Food and Drug Administration (FDA) approval -- the first such drug to gain such approval in five years. As a result, AMLX was last seen 7.7% higher ahead of the bell, and looking to add to a nearly 135% six-month gain.
- Piper Sandler upgraded financial services concern Voya Financial Inc (NYSE:VOYA) to "overweight" from "neutral," and raised its price target by $5 to $70. The broker cited factors such as attractive valuation and a product portfolio that stands to benefit from inflation. VOYA is slightly higher before the open, up 1.2% at last glance, as it looks to overtake its slim 8.1% year-to-date deficit.
- The Chicago Purchasing Managers' Index (PMI) and consumer sentiment data are due out later today.
European Markets Seek Relief from Selloff
Asian markets mostly fell Friday, as investors monitor the rocky economic landscape. China’s Shanghai Composite saw a 0.6% loss, brushing off news that the country’s factory data rose to 50.1 unexpectedly in September, topping expectations. Meanwhile, the yuan saw some strength after the People’s Bank of China asked state banks to support the currency. Elsewhere in the region, the Hong Kong Hang Seng added 0.3%, the South Korean Kospi shed 0.7%, the Nikkei in Japan lost 1.8%, even after the country’s industrial production saw a larger-than-expected rise in August. A jump in August retail sales in Japan was also reported.
European stocks, on the other hand, are seeing a slight rise as markets search for relief amid the global selloff. Euro zone inflation numbers climbed to a new record high of 10% for September, topping expectations. The U.K. economy saw a 0.2% expansion in the second quarter, while the British pound is still in recovery mode, hitting one-week highs after Monday’s record low. In response, the London FTSE 100 is 0.07% higher, the French CAC 40 is up 0.6%, and the German DAX has added 0.4%.