A trader works on the floor of the New York Stock Exchange on Friday, Aug. 23, 2024. (Source: Bloomberg | Getty Images)
Stock futures edged higher Thursday night as investors braced for a critical inflation report monitored by the Federal Reserve. Futures linked to the Dow Jones Industrial Average rose by 50 points, or 0.1%, while S&P 500 futures increased by 0.2%, and Nasdaq 100 futures climbed by 0.3%.
In extended trading, Ulta Beauty saw a 7% drop after failing to meet earnings expectations for the second quarter. Conversely, Lululemon Athletica surged by 6% following better-than-expected earnings, and Dell Technologies gained 3% due to strong fiscal second-quarter results, driven by server sales.
This week has seen volatile trading ahead of Nvidia’s quarterly results, which negatively impacted the S&P 500 and dragged the Nasdaq Composite lower on Thursday. The Dow bucked the trend, adding over 240 points to achieve a new record.
Investors are now looking ahead to the personal consumption expenditures (PCE) price index release on Friday at 8:30 a.m. ET. Economists surveyed by Dow Jones predict a 0.2% monthly rise and a 2.5% annual increase in July’s headline prices. The core reading is expected to show a 0.2% monthly gain and a 2.7% annual rise.
The Federal Reserve closely monitors this metric, and it could influence their rate decision in September. “The market is set to absorb the PCE results, with expectations of a slight increase in the core year-over-year rate to 2.7% from 2.6%,” stated Quincy Krosby, LPL Financial’s chief global strategist. She added that any unexpected inflation spike could negatively impact the market if it suggests inflation is not on a downward trend.
As August concludes, the S&P 500 is on track for a 1.3% gain, and the Dow aims for a 1.2% increase. However, the Nasdaq Composite is down by nearly 0.5% this month. For the week, the S&P 500 and Nasdaq are set for their first losing week in three, down 0.8% and 2%, respectively. The Dow is on pace for its third consecutive positive week, with a 0.4% gain.
Original Story https://www.cnbc.com/2024/08/29/stock-market-today-live-updates.html
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