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U.S. Futures Edge Higher; Inflation Data Puts Fed Meeting Into Focus

Stock MarketsJun 11, 2021 07:02AM ET
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By Peter Nurse   

Investing.com - U.S. stocks are seen opening marginally higher Friday, remaining near record levels, with investors seemingly unconcerned about soaring inflation ahead of next week’s Federal Reserve meeting. 

At 7:05 AM ET (1205 GMT), the Dow Futures contract was up 95 points, or 0.3%, S&P 500 Futures traded 8 points, or 0.2%, higher, and Nasdaq 100 Futures climbed 30 points, or 0.2%.

The three major indices closed higher Thursday, with the broad-based S&P 500 ending 0.5% higher, hitting a new record during regular trading, the blue-chip Dow Jones Industrial Average gained 0.1% and the tech-heavy Nasdaq Composite closed 0.8% higher.

These gains occurred despite U.S. consumer prices rising 5% year-on-year in May, the biggest jump in nearly 13 years, following on from April’s sharp 4.2% climb.

Investors appear to have looked through this release, as the makeup of the index supported Federal Reserve Chair Jerome Powell's repeated assertion that higher inflation will be transitory.

At the same time the recovery in the labor market continued as the number of Americans filing new claims for unemployment benefits fell to the lowest level in nearly 15 months.

Friday's economic data slate is largely confined to the University of Michigan consumer sentiment reading, at 10 AM ET (1400 GMT), and so attention will turn to next week’s Federal Reserve meeting. 

That “looks to be one of the big, final event risks before the market shuts up shop for the summer,” said analysts at ING, in a note. “The consensus clearly seems to be that though the Fed may hint that a tapering discussion may be closer than before, it will not be rushed into anything.” 

In corporate news, the so-called meme stocks are likely to remain in the spotlight Friday after they all ran into hefty selling during the previous session.

AMC Entertainment (NYSE:AMC), GameStop (NYSE:GME) and Clover Health (NASDAQ:CLOV) all suffered double-digit losses on Thursday, pulling back from their recent explosive rallies.

Crude oil prices edged higher Friday, set for their third weekly rise on expectations for a recovery in fuel demand as the global economy bounces back from the pandemic.

By 7:05 AM ET, U.S. crude was up 0.6% at $70.74 a barrel, after climbing Thursday to its highest close since October 2018. Brent was up 0.5% at $72.88, after closing at its highest since May 2019 on Thursday. 

The globe’s top oil producers will need to boost their output in order to meet demand set to recover to pre-pandemic levels by the end of 2022, the International Energy Agency said on Friday.

"OPEC+ needs to open the taps to keep the world oil markets adequately supplied," the Paris-based energy watchdog said in its monthly report. 

"In 2022 there is scope for the 24-member OPEC+ group, led by Saudi Arabia and Russia, to ramp up crude supply by 1.4 million barrels per day (bpd) above its July 2021-March 2022 target.”

Later Friday, traders will focus on the latest weekly update from Baker Hughes of the number of oil rigs, while the CFTC will release its weekly commitments of traders report. 

Elsewhere, gold futures fell 0.2% to $1,892.20/oz, while EUR/USD traded 0.2% lower at 1.2147.

 

U.S. Futures Edge Higher; Inflation Data Puts Fed Meeting Into Focus
 

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Comments (9)
Tiberius Augustus
Tiberius Augustus Jun 13, 2021 3:27AM ET
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On Bloomberg they now saying inflation is good for stocks. Buy
Ricardo Diogo
rcd72 Jun 11, 2021 9:36AM ET
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print more! until we have a double digit inflation ...in will be "transitory" into misery
David Bologa
David Bologa Jun 11, 2021 9:36AM ET
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your toughts about monday?
Kaveh Sun
Kaveh Sun Jun 11, 2021 9:30AM ET
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Fed cant stop printing because China Biden will remove them all. China Biden dont threat, he does it behind ur back.
JUNI ARIFIN
JUNI ARIFIN Jun 11, 2021 9:05AM ET
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Bingung woyyyyy
Franco Dominguez
Franco Dominguez Jun 11, 2021 8:46AM ET
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all business raising wage and cost because shortage of suppliers and this will be transitory?₩
john doe
john doe Jun 11, 2021 8:46AM ET
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They lie to us. They think we are sleepy sheep.
David Bologa
David Bologa Jun 11, 2021 8:46AM ET
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i'm trying to understand, monday will be under 45?
Dave Jones
Dave Jones Jun 11, 2021 8:23AM ET
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Atlas shrugged
Mitchel Pioneer
Mitchel Pioneer Jun 11, 2021 7:55AM ET
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Another day of Friday fraud on tap, as the US Ponzi Scheme just can't post a loss on a Friday.  Wall Street prepares to send the US working class into another weekend with a financial knife in their back, as the criminal pumping of average holdings continues.  Assume the position America.
Wahed Kurdistani
Wahed Kurdistani Jun 11, 2021 7:42AM ET
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Sean Nolan
Pendragon Jun 11, 2021 7:35AM ET
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History has shown. When inflation is high, P/E ratios are low; when inflation is low, P/E ratios are high.
 
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