Released this morning:
Core PCE, the Fed’s favorite measure of inflation, increased by 0.2% month-over-month in April or 1.4% year-over-year. This was right in line with expectations.
NYSE Morning Update
Ahead of the Bell: Dow futures are trading down 4 points and S&P futures are trading down 2 points. Global financial markets appear to be taking a pause after the major indices hit fresh new highs again in the previous trading session. Market participants will be looking to reshuffle their positions and adjust their portfolios for the weekend and ahead of the European Central Bank policy meeting next week. According to reports, investors will try to guard against any disappointments from the ECB, although it is widely expected that the central bank will easy monetary policy in the form of an interest rate cut at its June 5th meeting.
• On the economic calendar today, personal income and outlays for April will be published before the opening bell, 0.4% is expected compared with 0.5% for March. The Reuter’s/University of Michigan’s consumer sentiment index will be released after the market opens and it is forecasted to be 82.5 versus 81.8 for the month prior.
• The dollar is up against the Japanese yen and down against the euro and the British pound. Gold is trading at $1,253. Crude oil is currently trading at $103 a barrel.
• Yesterday, stocks rose despite reports from the Commerce Department, which showed Gross Domestic Product fell at a 1% annualized rate, worse than the most pessimistic forecast in a survey of economists.
• On CNBC this morning, Helima Croft, Director of Commodities Research at Barclays Capital, talked about oil and geopolitical hot spots. Croft said right now Russia looks like it’s open for business despite the sanctions. The restrictions have been a slow, ratcheted up process. She pointed out, several big oil companies have signed deals during the Ukrainian crisis and thus she does not feel crude oil flow has been disrupted. Helena says the appetite for further sanctions and higher crude prices are not there. As long as Vladimir Putin does not disrupt the elections in Ukraine and move his troops from the border then oil markets will be fine.
• Have great weekend.