Dow futures rise 75 pts; Fed’s main inflation gauge in focus
Dow futures rise 75 pts; Fed’s main inflation gauge in focus By Investing.com
Breaking News
‘;
Stock Markets 5 hours ago (Mar 31, 2023 07:13AM ET)
(C) Reuters
By Peter Nurse
Investing.com — U.S. stocks are seen opening largely higher Friday, with investors cautiously awaiting the release of a key inflation print which could provide clues about the Federal Reserve’s future monetary plans.
At 07:00 ET (11:00 GMT), the Dow futures contract was up 75 points, or 0.2%, S&P 500 futures traded 4 points, or 0.1% higher, and Nasdaq 100 futures dropped 10 points, or 0.1%.
The main indices closed higher Thursday, and are on pace to post a positive week. The blue-chip Dow Jones Industrial Average is up 1.9% so far this week, and the broad-based S&P 500 is up 2%, both on course for their best weekly performance since January. The tech-heavy Nasdaq Composite is up 1.6% on the week.
Stability in the U.S. banking sector has allowed investors to focus once more on the health of the country’s economy and the Federal Reserve’s battle with inflation.
The market seems roughly evenly split on the Fed’s next move, with around half betting on a rate hike of a quarter of a percentage point, while the other half expect the central bank to pause when it next meets in May.
With this in mind, the Federal Reserve’s preferred measure of inflation, the index for personal consumption expenditures, due at 08:30 ET (12:30 GMT), will be the day’s main focus.
Analysts expect the headline core PCE rate to stay at 4.7%, suggesting the policymakers will still have interest rate hikes in mind when they next meet, even allowing for the potential hit to economic activity caused by the banking turbulence.
Personal income data and consumer spending are also scheduled, as is the final March reading of the University of Michigan’s consumer sentiment index.
In corporate news, Virgin Orbit (NASDAQ:VORB) announced it was laying off about 85% of staff as the rocket maker has not been able to raise new investment, while Bed Bath & Beyond (NASDAQ:BBBY) has detailed plans to raise $300 million in equity in a fresh attempt to stave off bankruptcy.
Oil prices traded in a subdued fashion Friday, as traders digested the mixed activity data out of China, the world’s largest crude importer, ahead of the U.S. inflation release.
China’s official composite purchasing managers index hit its highest level since before the pandemic, but the manufacturing PMI, which tracks activity in the country’s big state-owned enterprises, fell slightly.
Optimism surrounding China’s economic recovery, and the associated boost to crude demand, has become a key determinant of prices this year.
By 07:00 ET, U.S. crude futures traded 0.4% higher at $74.66 a barrel, while the Brent contract climbed 0.1% to $78.70.
Additionally, gold futures fell 0.1% to $1,995.50/oz, while EUR/USD traded 0.2% lower at 1.0876.
Dow futures rise 75 pts; Fed’s main inflation gauge in focus
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5 analyst cuts: JD.com cut to Hold, stock surges on subsidiaries’ IPOs Pro Recap
5 analyst cuts: JD.com cut to Hold, stock surges on subsidiaries’ IPOs Pro Recap
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Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
U.S. PCE price inflation slowed in February, core rate equaled 15-month low
U.S. PCE price inflation slowed in February, core rate equaled 15-month low By Investing.com
Breaking News
‘;
Economic Indicators 4 hours ago (Mar 31, 2023 08:39AM ET)
(C) Reuters
By Geoffrey Smith
Investing.com — Consumer prices rose less than expected in February, the latest monthly update of the Federal Reserve’s preferred measure of inflation showed.
The price index for core personal consumption expenditures rose only 0.3% on the month, less than the 0.4% expected, and a slowdown from a downwardly-revised 0.5% increase in January.
The annual rise in core PCE prices edged down to 4.6% from 4.7% as a result, matching the lowest it has been since the end of 2021.
The numbers may go some way to persuading the Fed that it no longer needs big interest rate hikes to keep inflation in check. Headline core PCE inflation has been on a downward trend for a full year now, but is proving to be more stubborn than the Fed had expected while the U.S. was still suffering from pandemic-related disruption.
Other data released at the same time showed household spending and income also rising roughly in line with expectations, at a modest 0.2% and 0.3% on the month, respectively. The Bureau of Economic Analysis said that strong increases in spending on housing, health care and gasoline were offset by sharply declining outlays on motor vehicles and accessories, as the used car market continued its reversion to pre-pandemic norms.
The personal savings rate ticked up to 4.6% from 4.4%.
U.S. PCE price inflation slowed in February, core rate equaled 15-month low
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U.S. stocks are rising after inflation data boosts hopes for Fed pause
U.S. stocks are rising after inflation data boosts hopes for Fed pause By Investing.com
Breaking News
‘;
Stock Markets 2 hours ago (Mar 31, 2023 10:44AM ET)
(C) Reuters.
By Liz Moyer
Investing.com — U.S. stocks were rising after a key inflation reading came in softer than expected.
At 10:40 ET (14:40 GMT), the Dow Jones Industrial Average was up 160 points or 0.5%, while the S&P 500 was up 0.6% and the NASDAQ Composite was up 0.8%.
The Commerce Department’s inflation report showed the personal consumption expenditure index, which is closely watched by the Federal Reserve, rose 0.3% in February from the prior month versus a 0.6% rise in January. That was below expectations.
For the year through February, core PCE prices rose 4.6%, matching the lowest it has been since the end of 2021.
The University of Michigan‘s consumer sentiment reading came in below expectations at 62, down from the previous reading.
The Fed has said it is watching the data as it makes its decisions about the next step for interest rates as it continues its quest to tame inflation. Softer inflation numbers and a still-tight labor market will be factors when it next meets in May. Futures traders are evenly split on betting for a quarter of a percentage point rate or a pause.
It’s the last day of the first quarter, ending a volatile three months for stocks. The Nasdaq is on track for its biggest quarterly percentage gain since the end of 2020, while the S&P 500 is up nearly 6% despite a battered banking sector.
The KBW Regional Banking Index (NASDAQ:KBWR) is down 19.9% in the first quarter.
Shares of Virgin Orbit Holdings Inc (NASDAQ:VORB), which is billionaire Richard Branson’s commercial satellite launch company, fell 42% after it said it would lay off most of its staff after it failed to secure funding.
Nikola Corp (NASDAQ:NKLA) stock was down 12% after it priced a sale of $100 million in stock 20% below Thursday’s closing price.
Oil was rising. Crude Oil WTI Futures were up 0.9% to $75.06 a barrel, while Brent Oil Futures were up 0.7% to $79.13 a barrel. Gold Futures were flat at $1,996.
U.S. stocks are rising after inflation data boosts hopes for Fed pause
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Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
PCE prices, Trump indicted and Huawei woes – what’s moving markets
PCE prices, Trump indicted and Huawei woes – what’s moving markets By Investing.com
Breaking News
‘;
Economy 6 hours ago (Mar 31, 2023 06:16AM ET)
(C) Reuters
By Geoffrey Smith
Investing.com — The U.S. updates us on the Federal Reserve’s preferred gauge of inflation. Donald Trump becomes the first ex-President in U.S. history to face criminal charges, and Eurozone inflation is still going strong despite the unwinding of last year’s energy spike. Here’s what’s moving markets on Friday, 31st March.
1. PCE prices, personal income and spending data due
The U.S. updates on the Federal Reserve’s preferred measure of inflation, the index for personal consumer expenditures. The numbers, due at 08:30 ET (12:30 GMT) will shed more light on how much leeway the Fed has to go easy on interest rates in order to allow recent concerns about banking stability to blow over.
The answer may well be: not much. Analysts expect the headline core PCE rate to stay at 4.7%. Those betting that the economic slowdown will force the Fed to pivot may take more cheer from February data for personal income and spending, which are both expected to show a slowdown from January.
Most market participants will be anxious to avoid copying developments in the Eurozone, where core consumer prices leaped by 1.2% last month, offsetting the reversal of last year’s energy price spike. Headline inflation slowed to 6.9% from 8.5% however.
2. Trump indicted over hush money payment to porn star
Donald Trump is to become the first ex-President of the United States to face criminal charges, after a Grand Jury voted to indict him over hush money payments made to a former porn star during the 2016 election campaign.
Trump’s vice president Mike Pence called the move “an outrage” that threatened to reopen a bitter partisan dispute. Trump’s critics, predictably, took the view that it was justice running its course, as with the ongoing trials of the January 6th rioters.
It still isn’t clear what charges Trump will face when he is arraigned (something predicted for Tuesday). The incident is unlikely to help the drafting of bipartisan legislation on Capitol Hill for the next two years, but given how low expectations were on that front, it is unlikely to be a market-relevant story in the near term.
3. Stocks set to open higher as Chinese ADRs grab the limelight again
U.S. stock markets are set to open higher again on Friday, supported by two factors which are if not contradictory, then at least inconsistent. On the one hand, fears around the stability of regional banks continue to ease. On the other, short-term interest rate futures reflect expectations that the Fed will start to cut interest rates earlier as a result of this month’s volatility.
By 05:35 ET (09:35 GMT), Dow Jones futures were up 60 points, or 0.2%, while S&P 500 futures were up a little less and Nasdaq 100 futures were essentially flat. The three main cash indices are on course for gains of between 1.4% and 2.0% this week, which will mean that the DJIA is the only one of the three not to be up in the first quarter of the year.
Stocks likely to be in focus later include JD.com (NASDAQ:JD) and Alibaba (NYSE:BABA), as details continue to dribble out about the IPOs of their various operating units. Also in focus will be Virgin Orbit (NASDAQ:VORB), which appears fatally wounded by the failure of a satellite launch earlier this year, and Bed Bath & Beyond (NASDAQ:BBBY), which announced plans to raise $300 million in equity in a fresh attempt to stave off bankruptcy.
4. Chinese economy gains traction – but not Huawei
China’s economic recovery gained a little more momentum in March, according to a closely-watched business survey released overnight.
The official composite purchasing managers index, a rough real-time proxy for economic activity, hit its highest level since before the pandemic. The improvement was due entirely to non-manufacturing, while the manufacturing PMI, which tracks mainly the country’s big state-owned enterprises, fell slightly to 51.9.
Elsewhere, Huawei said its profit fell nearly 70% last year under the ever-harsher impact of U.S. sanctions on it.
5. Oil holding weekly gains as OPEC+ meeting nears
Crude oil prices eased off slightly overnight but are set to close near a two-week high, supported by the data out of China. Market focus is turning to next week’s meeting of the so-called OPEC+ grouping, whose discipline has shown signs of cracking in recent weeks under the pressure of western sanctions on Russia.
By 05:45 ET, U.S. crude futures were down less than 0.1% at $74.34 a barrel, while Brent futures were down 0.3% at $78.39 a barrel.
The CFTC’s net positioning data and Baker Hughes’ rig count round off the week later.
PCE prices, Trump indicted and Huawei woes – what’s moving markets
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(C) 2007-2023 Fusion Media Limited. All Rights Reserved.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
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