Global Courant
Trader on the floor of the New York Stock Exchange, July 15, 2021.
Source: NYSE
US stock futures were mixed Friday morning as investors awaited the latest data on personal consumer spending, the Federal Reserve’s favorite inflation gauge.
Futures linked to the Dow Jones Industrial Average 11 points lower, or 0.03%. S&P 500 futures ticked higher by 0.07%, and Nasdaq 100 futures were up 0.2%.
In Thursday’s regular trading, the Dow jumped nearly 270 points, or 0.8%, with help from big bank names. The S&P 500 almost 0.5% added, and the Nasdaq composite ended the day flat.
Friday is a crucial day for investors, marking not only the end of June, but also the close of the second quarter and first half. Here are the indexes as of Thursday’s close.
For June: The S&P 500 is up 5.18% and is on track for its best monthly performance since January. The Nasdaq is up 5.07% as both the Nasdaq and the Broad Market Index are heading positive for the fourth straight month. The Dow is up 3.69% and is on track for its best month since November. For the second quarter: The S&P 500 is up 6.99% for a third straight quarter. The Nasdaq touts an 11.2% gain for back-to-back positive quarters. The Dow is up 2.55%, but is also on track for a third winning quarter. So Far and First Half: The S&P 500 is up 14.51% and heading for its best first half since 2018. The Nasdaq is up nearly 30%, its best first half since 1983. The Dow up 30 shares posted a more modest gain of 2.94%.
The three major averages are also on track for winning weeks, with the S&P 500 and the Dow each up more than 1%, and the Nasdaq up 0.7%.
Main economic data
Stephanie Lang, chief investment officer at Homrich Berg, said there is a push and pull between a soft landing scenario driven by strong economic data and the Fed positioning itself for a tougher tone going forward.
“While economic data was strong…the Fed continued to surprise positively on how far they could go with their tightening,” she said. “They’ve made it clear that inflation remains their top priority, and they can do that because the job market has remained so strong, but you know, their ultimate goal is to get tight enough that you see some economic weakness so there’s less inflationary pressure .” .”
“We think the Fed will go ahead with this rate hike,” Lang added, noting that she expects two more hikes. “It really depends on how tight the labor market remains and how sticky inflation remains.”
Investors’ attention will be on May’s PCE data, due Friday at 8:30am ET. According to economists polled by Dow Jones, the core personal consumer spending index is expected to rise 0.3%. It rose 0.4% April. On a year-over-year basis, the gauge is expected to be up 4.7% – the same rate at which it grew in the previous month.
—Chris Hayes of CNBC contributed reporting.
