Global Courant 2023-04-14 12:09:22
Equity futures are slightly lower early Friday morning as investors looked forward to the start of the corporate earnings season as they pondered what the latest inflation data on the economy implies.
Futures linked to the Dow Industrial Average lost 72 points, or 0.21%. S&P 500 futures were slightly lower and Nasdaq 100 futures lost 0.14%.
The moves follow a winning day on Wall Street as investors welcomed the latest data showing that the rate of inflation was slowing. The Nasdaq composite ended nearly 2%, while the S&P 500 And Dow ended 1.3% and 1.1% higher respectively.
March’s producer price index, a measure of the prices paid by businesses, fell 0.5% from the previous month, while economists polled by Dow Jones expected prices to remain flat. Excluding food and energy, the index lost 0.1% month-over-month, while economists estimate a 0.2% month-over-month increase.
The PPI, which is considered a leading indicator of consumer inflation, has supported a trend of declining inflation as shown by Wednesday’s March consumer price index report. Consumer prices rose 5% year on year, the smallest year on year increase in almost two years.
The data points supported those who hoped the Fed will see inflation fall enough to end its rate hike campaign in the near future, said Sam Stovall, chief strategist at CFRA Research.
“Today’s movement in the market clearly reflects the continued decline in inflationary pressures — and therefore the belief that the Fed is more likely to pull out of one more rate hike than two,” Stovall said. “Investors are becoming optimistic that times will improve.”
Investors are looking forward to the profits of the major banks on Friday JPMorgan, Wells Fargo And City set to report for the bell. They will also look at data on retail sales, import prices and the industrial sector for more insight into the state of the economy.
