US stock futures rise as investors await consumer sentiment report

U.S. stock futures signaled a stronger start for Wall Street on Friday as investors eagerly awaited the University of Michigan’s consumer sentiment survey, which also includes closely watched inflation expectations. .

How are stock index futures traded?
  • S&P 500 ES00 futures contracts,
    +0.39%
    increased by 0.5% to 4,231.50

  • Futures contracts Dow Jones Industrial Average YM00,
    +0.32%
    gained 154 points, or 0.4%, to 33,458

  • Nasdaq-100 NQ00 futures,
    +0.44%
    gained 0.5% to 13387

On Thursday, the shares ended mixed with the Nasdaq Composite COMP,
-0.58%
falling 0.6% to 12,779.91, a day after it officially emerged from a bear market. The S&P 500 SPX index,
-0.07%
slid 0.1% to 4,207.27 and the Dow Jones Industrial Average DJIA,
+0.08%
gained 0.1% to end at 33,336.67.

What drives the markets?

After a week that delivered upbeat news on consumer price inflation and producer prices, investors await the next data points – July import prices at 8:30 a.m. EST , followed by the University of Michigan’s preliminary consumer sentiment index for August at 10 am

The UMich server also includes 5-year inflation expectations, data that has been cited by Federal Reserve Chairman Jerome Powell as an important indicator in setting monetary policy.

Saxo Bank strategists expect modest improvement on the sentiment side, helped by easing gasoline prices, which fell below $4 a gallon on Thursday for the first time in months.

San Francisco Federal Reserve Chair Mary Daly said it was too early to “declare victory” on U.S. inflation in an interview with the Financial Times published on Thursday. But Daly said a 50 basis point hike remains his benchmark for the Fed’s next meeting in September. She is not a voter on the Federal Open Market Committee this year.

“One factor is clearly playing against equities at the moment: perhaps excessive positive pricing following CPI data released this week,” said Ipek Ozkardeskaya, senior analyst at Swissquote Bank, in a note to clients.

“Fed funds futures activity puts a 65% chance of a 50 basis point rate hike in September, meaning there is now plenty of room for the latest prices to rise. Fed reverse, but don’t need too bad news. A simple rebound in energy prices could easily bring the Fed hawks back into the market and change the mood,” she said.

US Crude Price CL.1,
-0.06%

CLU22,
-0.06%,
up 6.3% this week, benefited from Thursday’s International Energy Agency report which raised its demand forecast due to summer heat waves in Europe and tight natural gas supplies. Crude last rose 0.3% to $94.68 a barrel on Friday.

For now, stocks are set for another week of gains. Up 1.9% so far this week, the S&P 500 is on course for its fourth straight weekly gain and longest winning streak since the week ended Nov. 27, 2020, according to Dow Jones Market. Data.

The Nasdaq was also on course for a fourth straight weekly win, up 1.5% for the week so far, its longest winning streak since the week ended Nov. 5, 2021.

Robert D. Coleman