Stocks keep on their feet as Fed watches key inflation information to help keep cool

By news2source.com

Stocks keep on their feet as Fed watches key inflation information to help keep cool

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US stocks rose on Friday as a fresh reading from a closely watched inflation gauge pushed the narrative of slowing inflation and investors absorbed the fallout from the Biden-Trump debate.

The S&P 500 (^GSPC) complex moved a step closer to its file top with the benchmark more or less 0.1% lower. The tech-heavy Nasdaq Composite (^IXIC) rose 0.3%, leading the Dow Jones Industrial Average (^DJI) to a nearly 0.1% decline.

The gauges are looking toward an upbeat end to a bumpy generation that has seen the S&P 500 and Nasdaq bounce back after three-day declines. ERA shares look set to maintain a stellar first leg as they end June’s biggest trading year of the year, with those ups and downs fueling fears of a pullback for the remaining 12 months.

The most important data level of the first six months of the year came in the mode of the Fed’s most popular inflation gauge. Josh Schafer of Yahoo Finance reported that inflation eased in May as prices rose at the slowest pace since March 2021.

The core non-public consumption expenditure (PCE) index, which strips out food and effort costs and is closely watched by the Fed, rose 0.1% from a year earlier in May, in line with Wall Boulevard expectations.

Meanwhile, with the US election in November topping the list of threats, buyers took note of President Joe Biden’s lackluster appearance in his first debate against presumptive Republican nominee Donald Trump. The previous president’s promises to cut tax cuts and rein in industry have been revealed to be possibly driving stocks higher. Shares of Trump Media & Era Crew (DJT) surged in morning buying and selling.

The market may be on alert for additional indicators that consumer resilience is waning, as major companies mark recessionary prospects for gross sales. Nike (NKE) fell more than 15% in early trading, with Generation Walgreens (WBA) shares also under pressure after Thursday’s 22% decline.

live in6 updates

  • New inflation study is trading in expectations of Fed price cuts this year

    The case is made even stronger by the prime interest rate being reached in a few months.

    An unused study from the Fed’s most popular inflation gauge suggests a slowing in May could push prices higher. This further strengthened expectations that central banks will start relaxing rates this year.

    However, despite no other sure signs that inflation is running faster than expected in the first quarter, the Union Cabinet is unlikely to cut rates at its upcoming meeting in late July, Yahoo Finance’s Jennifer Schoenberger reports.

    The Fed will likely need more generation and evidence that inflation is consistently moving down to its 2% target, making a primary rate cut within the year even more likely.

    “It gives them more confidence that they can cut rates if they need to, but I don’t think they need to.” Wilmer Stith, Wilmington Trust bond fund manager, said, noting that economic growth is still strong.

    “It is too early to narrow it down in the coming weeks.”

  • Stock trends in morning trading

    Here are some of the stocks leading Yahoo Finance’s trending ticker page during morning trading on Friday.

    Trump Media & Technology Group (DJT, The company’s shares rose before falling about 2% after former President Donald Trump faced off against current Commander-in-Chief Joe Biden in the first presidential debate of 2024. Biden’s performance was seen as largely shaky, with moments of confusion that gave the impression that Trump had won the night. The company is the parent of Trump’s social media platform Truth Social.

    Nike (NKE, The sports apparel retailer’s sales fell nearly 20% Friday morning, after the company projected a larger-than-expected sales decline in 2025, following a 10% decline in the first quarter.

    Infinera (INFN, Shares of the telecommunications equipment maker rose 17% after Nokia reached an agreement to buy the company for $2.3 billion. The deal values ​​Infinera at a 28% premium to the stock’s closing price on Wednesday.

    to chew (CHWY, The online pet food supplier dropped nearly 10% after the volatile volatility was caused by a post on X (formerly Twitter) by influential trader Keith Gill, known as Roaring Kitty. Gill’s account posted a photo of an animated dog on Thursday, without elaboration or context, prompting investors to dive into Chewy. But Friday morning’s sudden rise was followed by a sharp decline, highlighting the sudden and erratic movements of meme stock trading.

  • Stocks rise as Fed’s favorite inflation metric cools further

    US stocks rose on Friday as the latest reading of the Fed’s preferred inflation gauge showed inflation was continuing to ease, raising the possibility of a rate cut in the coming months.

    The S&P 500 (^GSPC) rose about 0.1% after the benchmark closed one step closer to its record high. The tech-heavy Nasdaq Composite (^IXIC) rose 0.3%, while the Dow Jones Industrial Average (^DJI) rose about 0.1%.

  • The Fed’s preferred inflation gauge shows prices rose at the slowest pace since March 2021

    The latest readings from the Fed’s preferred inflation gauge showed that inflation eased in May as prices rose at the slowest pace since March 2021.

    The core personal consumption expenditures (PCE) index, which strips out food and energy costs and is closely watched by the Federal Reserve, rose 0.1% in May from the previous month and slowed from 0.3%. Went. An increase was seen in April.

    Core PCE in May was 2.6% higher than a year earlier, in line with estimates and unchanged from the annual increase seen in the previous two months. The May reading marked the slowest annual increase in more than three years.

  • Trump media is moving forward

    Shares of Trump Media & Technology (DJT) are on the rise, following President Joe Biden’s shaky debate performance.

    At the time of writing, shares are up 7.5% in premarket trading.

    Friends, be careful what you are trading here.

    Here’s the company’s latest 10-Q report, showing a “corporate” thing doing one thing and bleeding a lot of cash doing it.

  • Nike shares are on the rise

    Looking just as bad (somewhat) as last night’s debate Nike (NKE) stock is in the premarket, down 14% at the time of this writing.

    The company’s guidance was indeed disappointing, and concerns remained about its management’s execution around product innovation. Not seeing better guidance from Nike in an Olympic year is a red flag.

    I like Stifel analyst Jim Duffy’s take on this quarter:

    “FY25 data (fifth downward consensus revision in 6 quarters), raises prospects of a growth turnaround in 2025 (likely FY4Q or spring 2025 at the earliest), leading investors to expect every fortune of not-yet-confirmed form. The uncertain consumer discretionary backdrop in 2HCY24 is said to be severely challenged until the momentum turns again in 2HCY25 and an investor year ahead. While the additional indecision provides lower returns than the former, including the chance for a top class higher than one enjoyed in ancient times, we appreciate the N scale advantage in a division with secular expansion tailwinds and potential structural margins, However, at wave valuations, a compelling support may not be found on the upside until extension inflection becomes more tangible.”

    Duffy booked his ranking at Nike downgraded this morning.

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