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Dow Futures Down 90 Pts; May CPI Report in Focus -Breaking


© Reuters.

Peter Nurse — U.S. stocks are seen opening in a muted fashion Friday ahead of a highly anticipated consumer inflation report, which is likely to set the scene for next week’s Federal Reserve meeting.

The contract fell 90 points (or 0.3%) at 7:01 AM ET (1100 GMT), but rose 10 points (0.1%) to close the gap.

At 8:30 AM ET (1330 GMT), the May U.S. data will be available. It is unchanged from April’s annual figure of 8.3%, but record fuel prices may present upside risk. 

This number excludes volatile fuel and food prices. It is slightly lower than the 6.2% increase in the last reading.

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The group will get together next week in order to determine their next step on tightening monetary policy. This year they have increased the amount by 75 basis point total. Next week, we’ll be looking for indicators that inflation has reached its peak.  

Also, the June reading will be held later in the session and it is expected to give an indication of public reaction to the persistently high level inflation.

Wall Street’s main indexes closed lower Thursday, after the Fed indicated that it will raise interest rates by 25% next month and then make another larger or similar move in September. 

Blue-chip fell over 600 points or 1.9%; broad-based dropped 2.4%, and tech-heavy ended 2.8% lower. The three major indices continue to trend lower for the week ahead.

This is corporate news Stitch Fix (NASDAQ:) is in the news after online personal stylist service, Personal Stylists International announced that it will reduce its salaried workforce of around 15% to save costs. 

Also, DocuSign’s stock (NASDAQ:) is seen to be sharply lower before the market after receiving a weaker report. Walt Disney (NYSE:) Announced a significant leadership change, with the firing of its television head.

Oil prices climbed Friday despite new lockdowns in Shanghai, with global supply tight and demand from the U.S., the world’s biggest consumer, remaining very healthy. 

Shanghai imposed new mobility curbs on Thursday after China’s largest economic hub recorded a cluster outbreak of COVID-19, raising concerns of reduced demand from the world’s largest crude importer.

That said, Brent was still on track for a fourth consecutive weekly gain and WTI for a seventh straight weekly increase. The benchmarks reached their highest closing levels since Wednesday March 8, when both had their highest settlements in 2008, and they posted their highest closes ever.

Futures were trading 0.8% higher at $122.45 per barrel by 7:01 AM ET. Contract prices rose 0.8% to $124.06. 

The price fell 0.4% to $1.844.80/oz and traded 0.3% higher at 1.0586.