US pre-open: Futures slightly lower ahead of PCE reading

(Sharecast News) - Wall Street futures were slightly lower ahead of the bell on Friday following a solid session for the Dow Jones on Thursday. As of 1240 BST, Dow Jones futures were down 0.04%, while S&P 500 and Nasdaq-100 futures had the indices opening 0.09% and 0.18% firmer, respectively.

The Dow closed 230.36 points higher on Thursday as traders digested weekly jobless claims data and a final reading of America's Q2 gross domestic product numbers.

Friday's primary focus will be August's personal consumption expenditures index at 1330 BST, with economists expecting to see headline PCE rise at a 2.3% annualised pace last month and a 0.1% month-on-month gain. With PCE being the Federal Reserve's preferred inflation metric, both policymakers and traders alike were hoping for numbers that show a continued cooling in inflation.

Trade Nation's David Morrison said: "US stock index futures were little changed in early trade this morning. Yesterday, all the majors closed in positive territory, with the S&P 500 posting a fresh all-time high. There's certainly plenty of positive sentiment around. Not only has the US Federal Reserve began to loosen monetary policy, but now China has joined in as well. Earlier this week the People's Bank of China cut rates while policymakers also announced a large chunk of fiscal stimulus. But ahead of today's US inflation update, investors seem content to sit on their hands.

"The Fed has made it clear that inflation is no longer its primary concern, as most members believe it to be on a 'sustainable' path back to its 2% target. According to the FOMC's Summary of Economic Projections from earlier this month, the expectation is that inflation will finally hit the Fed's target in 2026. Consequently, even if there was a small uptick in today's data, it is unlikely to dissuade the Fed from announcing additional rate cuts this year. Now the US central bank is focusing on the other side of its dual mandate, that is, maximising employment."

Elsewhere on the macro front, preliminary readings of last month's goods trade balance figures and wholesale inventories will be out at 1330 BST, while the University of Michigan's September consumer sentiment index will be published at 1500 BST.

In the corporate space, Costco shares were lower in pre-market trading following a Q4 revenues miss overnight.

Reporting by Iain Gilbert at Sharecast.com