Thursday June 10th

10-06-2021

Dow futures gain 100 points, shaking off hotter-than-expected inflation report

U.S. stock index futures fluctuated on Thursday as investors digested a key inflation report that showed a bigger-than-expected increase in price pressures. Dow futures rose 110 points, while those tied to the S&P 500 edged 0.2% higher. Nasdaq 100 contracts dipped 0.1% as many tech shares came under pressure with bond yields rising. Consumer prices for May accelerated at their fastest pace since the summer of 2008 amid the economic recovery from the pandemic-triggered recession, the Labor Department reported Thursday. The consumer price index, which represents a basket including food, energy, groceries across a spectrum of goods, rose 5% from a year ago. Economists surveyed by Dow Jones had been expecting a gain of 4.7%. Fears of spiking inflation have weighed on the stock market in the last month, with investors worried the jump in prices will raise costs for companies, spark a move higher in interest rates and cause the Federal Reserve to remove its easy money policies. “This CPI isn’t likely to change the narrative dramatically and there are still indications that inflation momentum is set to abate in the coming months,” Adam Crisafulli, founder of Vital Knowledge, said in a note Thursday. UPS shares rose about 1% in premarket trading after an upgrade from JPMorgan. Shares of Boeing and Delta Air Lines were also higher in premarket trading. U.S. markets continued to trade within a tight range on Wednesday, with all three major indexes ending the day within 0.5% of Tuesday’s closing levels. The Dow, S&P 500 and Nasdaq Composite all fell during regular trading, ending the session further away from their respective all-time highs. The S&P 500 remains closest to its benchmark and is just 0.44% away from a new all-time high. The Dow and Nasdaq are roughly 2% away from records. Video-game retailer and meme stock GameStop fell 7% in premarket trading even after the company tapped former Amazon executive Matt Furlong to be its next CEO and said that sales rose 25% last quarter. The company also said it may sell up to 5 million additional shares. Shares in Asia-Pacific mostly rose on Thursday, as investors looked ahead to an upcoming release of U.S. inflation data for May. The Shenzhen component in mainland China jumped 1.19% to close at 14,893.59, while the Shanghai composite gained 0.54% to finish the trading day at 3,610.86. Hong Kong’s Hang Seng index slipped about 0.1%, as of its final hour of trading. In Japan, the Nikkei 225 closed 0.34% higher at 28,958.56 while the Topix index finished the trading day little changed at 1,956.73. South Korea’s Kospi advanced 0.26% to close at 3,224.64. Oil prices rose on Thursday a day after slipping on data indicating weak U.S. driving season fuel demand as investors eyed upcoming U.S. economic data. Brent crude oil futures were up 18 cents, or 0.25%, at $72.40 a barrel, holding just shy of a high not seen since May 2019. U.S. West Texas Intermediate oil futures rose 11 cents, or 0.16%, to $70.07 a barrel, staying near its highest since Oct. 2018. Gold prices fell on Thursday, pressured by a firm dollar as investors awaited U.S. inflation data to gauge the Federal Reserve’s monetary policy stance as well as a European Central Bank meeting. Spot gold fell 0.4% to $1,880.17 per ounce by 0949 GMT, having earlier hit its lowest level since June 4 at $1,875.89. U.S. gold futures fell 0.7% to $1,883.30 per ounce.