US futures rise with key inflation data on deck

US stock futures rose on Friday ahead of the inflation reading that is key to Federal Reserve policy, as investors weigh signs of a slowdown in the US economy and digest the fallout from the debate between Biden and Trump.

S&P 500 futures (ES=F) advanced about 0.4% after the index closed a step closer to a record high. Futures on the tech-heavy Nasdaq 100 (NQ=F) also rose 0.4%, while Dow Jones Industrial Average (YM=F) futures hovered above the flat line.

Indices are looking for a positive end to a turbulent week that saw the S&P 500 (^GSPC) and Nasdaq Composite (^IXIC) rebound from a three-day losing streak. While stocks are set to post a stellar first half of the year as they enter the final trading day of June, the volatility has raised concerns of a pullback for the rest of the year.

With the US election in November high on the risk list, investors have taken notice. President Joe Biden’s poor performance In his first debate with Donald Trump. The former president’s promised tax cuts and trade restrictions are likely to boost stocks. Trump Media and Technology Group (DJT) shares rose in premarket trading.

Friday’s highlight is the release of the May PCE price index, the Fed’s preferred measure of inflation. After a batch of data on Thursday revealed more cracks in economic growth, investors are anticipating a slowdown that could prompt the Federal Reserve to start cutting interest rates. The report is expected to show the smallest monthly rise in the core personal consumption expenditures index – which excludes food and energy prices – since November.

Meanwhile, the market is alert for more signs that consumer resilience is losing steam, with major companies citing pessimistic sales forecasts. Nike (NKE) stock is down nearly 15% in premarket trading, while Walgreens (WBA) shares remain under pressure in the wake of Thursday’s 22% slump.

He lives2 updates

  • Trump and the media on the move

    Following President Joe Biden’s wobbly debate performance, Trump Media & Technology (DJT) shares are on the move.

    At the time of writing, shares were up 7.5% in pre-market trading.

    Watch what you post here people.

    Here is the company’s latest 10-Q report.shows a “company” doing something and losing a lot of money while doing it.

  • Nike shares advance

    Just as bad as last night’s debate is Nike (NKE) stock, which is down 14% premarket at the time of writing.

    The company’s guidance has been truly disappointing, and concerns remain about its management’s execution of product innovation. Not seeing better guidance from Nike in an Olympics year is a warning sign.

    I liked Stifel analyst Jim Duffy’s take on the quarter:

    “The FY25 Guidance (5th revision to downward consensus in 6 quarters), pushes growth prospects further into 2025 (possibly FY25Q4 or Spring 2025 at the earliest) and asks investors to ensure the success of approaches that are not yet proven to work and to look across the consumer market.” Estimate backdrop uncertain in 2HCY24 until momentum can build again in 2HCY25 Management credibility faces severe challenge and possibility of C-level regime change adds further uncertainty Investor Day in November is likely to define a multi-year economic pattern with lower returns than previous adding risk “To the premium it has enjoyed in the historical multiple, we still value an N-scale advantage in a category with growth tailwinds and structural margin potential, but at current valuation, we cannot support a compelling upside case until the growth inflection becomes clearer.”

    Duffy downgraded his Nike rating to Hold this morning.

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