Stock index futures traded in the green on Friday, as core PCE came largely in line with consensus.
S&P 500 futures (SPX) +0.3%, Dow futures (INDU) +0.3%, and Nasdaq 100 futures (US100:IND) +0.3%.
The 10-year Treasury yield (US10Y) down 2 basis points to 4.53%. The 2-year yield (US2Y) down 1 basis point to 4.92%. See how Treasury yields have done across the curve at the Seeking Alpha bond page.
U.S. stocks ended lower on Thursday, dragged by a post-earnings plunge in enterprise software giant Salesforce (CRM), while traders received data that sent conflicting signals about the economy and monetary policy.
Economic data from the Bureau of Economic Analysis showed that in its second estimate of Q1 real gross domestic product growth, the economy expanded at an annual rate of 1.3%, lower than the first estimate of 1.6% growth.
“Both good and bad data have managed to build a bullish narrative, as bad data has been seen to raise the likelihood of rate cuts. Having said that, the selloff this week remains pretty mild,” Deutsche Bank’s Jim Reid said.
April Core PCE Price Index came in at +0.2% M/M vs. +0.2% consensus and +0.3% in March; +2.8% Y/Y vs. +2.8% consensus and +2.8% prior.
PCE Price Index came at +0.3% M/M vs. +0.3% expected and +0.3% prior; +2.7% Y/Y vs. +2.7% consensus and +2.7% in March.
“We get fresh evidence on the hedonism of the U.S. consumer, with personal income and spending numbers. The personal consumer expenditure deflator will be the markets’ focus,” UBS’s Paul Donovan said.
The May Chicago PMI will also be released today during market hours, and is expected to rise to 41.1.
Dell Technologies (DELL) fell 16.2% in premarket trade, as it issued guidance that failed to cheer investors.