Investing.com — U.S. stock futures are falling as traders prepare for the release of new economic data on Friday. Investors will have the opportunity to analyze consumer spending and inflation numbers as they try to assess the state of the U.S. economy, with the possibility of further rate cuts by the Federal Reserve later this year. You will get it.
1. Futures edge decline
U.S. stock futures fell on Friday as investors awaited the release of a slew of economic data, including new consumer spending data and the Federal Reserve's recommended inflation measure.
By 3:42 ET, the contract was down 27 points, or 0.1%, down 9 points, or 0.2%, and down 73 points, or 0.4%.
The benchmark hit a record close for the third time this week on Thursday, adding 23 points or 0.4%.
The increase was backed up by figures showing weekly jobless claims fell more than expected, with final figures for U.S. gross domestic product showing that the world's largest economy fell in the second quarter. It was confirmed that the number had increased by 3%.
The numbers helped boost expectations that the economy and labor market are strong, as the Federal Reserve signaled it intends to move forward with its policy easing cycle after last week's big interest rate cuts.
2. Future outlook for personal consumption and PCE data
Investors may be closely monitoring the latest consumer spending and inflation data, which could offer a glimpse into the health of the U.S. economy as the Federal Reserve approaches further rate cuts expected later this year.
Personal spending, which accounts for more than two-thirds of economic activity, is expected to grow by 0.3% in August, slowing from 0.5% in the previous month.
Meanwhile, economists expect the personal consumption expenditures (PCE) price index, which Fed officials use as a gauge of inflation, to rise 0.2% month over month in August, matching July's pace. On a year-over-year basis, this number is expected to fall from 2.5% to 2.3%.
Excluding volatile items such as food and fuel, the PCE price index is expected to remain at the same level as July, at 0.2% month-on-month, and increase slightly on an annualized basis from 2.6% to 2.7%.
3. Intel and U.S. government to finalize $8.5 billion chip funding deal by year-end – FT
According to the Financial Times, Intel (NASDAQ:) and the U.S. government are likely to finalize an agreement to provide $8.5 billion in financing to the chip giant by the end of the year.
The FT, citing people familiar with the talks, said that while talks are at an advanced stage, there is no guarantee that a deal will be reached by the end of 2024.
The FT said a potential acquisition by Intel in whole or in part could disrupt negotiations.
Intel, which is pursuing various cost-cutting measures to strengthen its sputtering business, is reportedly attracting attention as a potential acquisition target, with rival Qualcomm (NASDAQ:) aiming to invest in the company. It is said that
4. Costco's earnings are disappointing.
Costco (NASDAQ:) reported fourth-quarter sales that were lower than analysts expected, as a drop in spending on big-ticket items and lower gas prices weighed on the membership warehouse chain.
The company's stock fell in extended trading following the news.
Speaking to analysts following the results, Chief Financial Officer Gary Millerchip said there were “signs that consumers are being very selective with how they spend their money,” with shoppers increasingly spending their money on things like TVs. added that they are increasingly paying attention to bargains on products. and home appliances.
Gasoline prices also rose 5.4% in the reporting period that ended Sept. 1, slower than the 6.6% rise in the previous quarter.
Revenue rose about 1% to $79.69 billion, below Wall Street expectations of $79.93 billion, but net income per share beat expectations at $5.29.
5. Oil dip
Oil prices fell on Friday, staying on track for a weekly decline as traders assessed prospects for increased production from Libya and the OPEC+ oil group.
As of 3:43 ET, futures were down 0.2% at $70.94 per barrel, while U.S. crude oil futures were down 0.1% at $67.67 per barrel.
In Libya, rival factions vying for control of the country's central bank agreed on Thursday to end a conflict that has disrupted the country's oil production and exports. Analysts cited by Reuters suggested more than 500,000 barrels per day (bpd) of Libyan supplies could return to the market.
Elsewhere, the Organization of the Petroleum Exporting Countries, known as OPEC+, and its allies plan to reverse massive production cuts of 180,000 barrels per day currently underway in December.
Investors are weighing the prospect of a massive stimulus package from China announced earlier this week that could boost supply. Analysts cautioned that it remains unclear whether the measures will boost activity in the world's largest oil importer.
