Indexes rise in anticipation of economic data
2022.12.09 05:51
Indexes rise in anticipation of economic data
Budrigannews.com – On Friday, U.S. stock index futures increased in anticipation of monthly producer prices data, which may provide additional clues regarding how long the Federal Reserve will continue to raise interest rates in order to contain inflation that has been rising for decades.
After two months of gains, Wall Street’s main indexes have been under pressure in December due to concerns about a possible recession fueled by prolonged U.S. monetary policy tightening and negative comments from top executives.
The Work Office’s report, at 8:30 a.m. ET, is supposed to show maker costs edged higher to 7.2% last month after a 8% ascent in October.
After growing by 6.7% in October, core producer prices, which exclude volatile food and energy components, are anticipated to rise by 5.9%.
Michael Hewson, chief market analyst at CMC Markets, stated, “The big question is whether this trend can be maintained against a U.S. central bank that doesn’t want to be seen as going soft on inflation, and services and wages data that points to a U.S. economy that is slightly more resilient than originally thought.”
The November consumer price index will be released on Tuesday, a day before the U.S. central bank’s policy decision, which is widely anticipated to result in a 50 basis point rate increase.
After data showed that initial jobless claims rose modestly last week, suggesting the labor market is deteriorating, U.S. stocks recovered from their recent losses on Thursday.
More Inflation expectations are rising-Bank of England
In the meantime, the preliminary December reading of the overall consumer sentiment index from the University of Michigan is anticipated to have improved after falling in November. Data are due at 10:00 a.m. Eastern Time.
We were up 34 points, or 0.1 percent, 8.75 points, or 0.22%, and 35 points, or 0.3 percent, at 5:15 a.m. ET.
NASDAQ: Broadcom After the chipmaker predicted revenue that would exceed Wall Street estimates for the current quarter, Inc. gained 0.3 percent in premarket trading.
NASDAQ: DocuSign After the provider of electronic signature products announced revenue for the third quarter that was higher than anticipated, Inc. saw a rise of 12%.
In anticipation of China’s COVID policy pivot, U.S.-listed China stocks gained. Bilibili, an online company (NASDAQ:) Inc. rose 5.6%, while Baidu Inc., a leading search engine (NASDAQ:) grew by 3.7%.
