🥇 First rule of investing? Know when to save! Up to 55% off InvestingPro before BLACK FRIDAYCLAIM SALE

Wall Street eyes higher open after inflation data

Published 28/07/2023, 08:17 pm
© Reuters. FILE PHOTO: A trader works on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., July 26, 2023.  REUTERS/Brendan McDermid/File Photo
DJI
-
CVX
-
INTC
-
F
-
XOM
-
MU
-
ESZ24
-
1YMZ24
-
NQZ24
-
FSLR
-

By Bansari Mayur Kamdar and Johann M Cherian

(Reuters) - Wall Street was set to open higher on Friday after data showing easing inflation pressures added to hopes that the Federal Reserve's policy tightening was ending, while chip stocks surged as Intel (NASDAQ:INTC) posted a surprise quarterly profit.

U.S. annual inflation slowed considerably in June, likely pushing the Federal Reserve closer to ending its fastest interest rate hiking cycle since the 1980s.

In the 12 months through June, the PCE price index advanced 3.0%. That was the smallest annual gain since March 2021 and followed a 3.8% rise in May.

"With inflation going in the right direction, this should give some breathing room for the stocks to refocus on earnings, which continue to outpace expectations," said Peter Cardillo, chief market economist at Spartan Capital Securities.

Market expectations of another 25 basis point rate hike in November were largely unchanged at 29.9% after the data.

Chipmaker Intel's results and forecast pointed to an improving PC market, sending its shares up 6.2% in premarket trading.

Peers Nvidia, Micron Technology (NASDAQ:MU) and Marvell Technology gained over 1% each.

Global stock markets eased following Japan's tweaks to its monetary policy.

The Dow snapped its longest winning streak since 1987 in the previous session as U.S. Treasury yields pressured stocks lower after news that the Bank of Japan will allow long-term interest rates to rise.

On Friday, the Bank of Japan made its yield curve control policy more flexible and loosened its defense of a long-term interest rate cap, in moves seen by investors as a prelude to an eventual shift away from massive monetary stimulus.

The yield on the U.S. 10-year note slipped, but still hovered close to its 4% level hit in the previous session.

All three major U.S. indexes are on track to end the week marginally higher, supported by Big Tech earnings, hopes that the Fed's monetary policy tightening was ending and the world's largest economy was heading for a soft landing.

At 8:40 a.m. ET, Dow e-minis were up 163 points, or 0.46%, S&P 500 e-minis were up 30.75 points, or 0.67%, and Nasdaq 100 e-minis were up 171.5 points, or 1.1%.

Ford Motor (NYSE:F) slid 1.7% after Chief Executive Jim Farley outlined a change in the automaker's product strategy, slowing the ramp-up of money-losing EVs, shifting investment to its commercial vehicle unit and citing plans to quadruple sales of gas electric hybrids over the next five years.

First Solar (NASDAQ:FSLR) jumped 11.5% after its second-quarter earnings beat estimates and the company announced plans to spend up to $1.1 billion on its fifth U.S. factory.

© Reuters. FILE PHOTO: A trader works on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., July 26, 2023.  REUTERS/Brendan McDermid/File Photo

Enphase Energy fell 14.6% after the solar inverter maker's third-quarter revenue forecast missed expectations,

Juniper Networks (NYSE:JNPR) tumbled 7.0% after the network operator forecast third-quarter revenue below market estimates.

Latest comments

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.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.