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Last updated: 10:30am EST
Stock indexes have been mixed so far in today’s trading. Earlier today, the December personal consumption expenditures (PCE) price index, which is closely monitored by the Federal Reserve, was 0.2% month over month and 2.9% year over year, excluding the more volatile food and energy categories. Rose.
While the monthly change was in line with expectations, the annual change was slightly below the expected 3% and below last month’s reading of 3.2%. Inflation, which includes food and energy costs, rose 0.2% month-on-month and 2.6% year-on-year.
This latest data adds to the evidence that inflation, while still higher than desired, is steadily declining. This change could signal the Fed to consider cutting rates later this year.
Breaking down the inflation statistics, we see a notable reversal of trends, with goods prices falling by 0.2%, while services prices rose by 0.3%. This is in contrast to the early days of the pandemic, when demand for goods surged, straining supply chains and driving up prices.
First published: 3:44 a.m. ET
U.S. futures edged lower on Friday morning as disappointing outlooks for semiconductor companies hurt investor sentiment. Nasdaq 100 futures (NDX), S&P 500 (SPX), Dow Jones Industrial Average (DJIA) are down 0.88%, 0.46%, and 0.38%, respectively, as of 3:33 a.m. ET on January 26th.
Yesterday, Intel (INTC) Shares fell nearly 10% during extended trading after the company announced lower-than-expected forecasts for the first quarter of fiscal 2024. In addition, KLA Co., Ltd. (KLAC) fell 5% as third-quarter earnings forecasts remained below consensus expectations due to weak demand in the electronics sector.
In other stock market news, Microsoft (MSFT) will lay off approximately 1,900 employees in its gaming division. This news comes more than three months after MSFT acquired his Activision Blizzard. Also, Apple’s (AAPL) iPhone shipments in China decreased by 2.1% year-over-year in the fourth quarter. At the same time, shares of Advanced Micro Devices (AMD) hit an all-time high yesterday due to expectations for AMD’s increased share in the AI market.
Turning to major economic reports, the December Core Personal Consumption Expenditure (PCE) report is scheduled to be released today. Economists expect US core PCE prices to rise by 0.2% in his final quarter of 2023. Additionally, corporate earnings announced today include Colgate-Palmolive (C.L.), American Express (AXP), and Caterpillar (Cat).
Meanwhile, at the time of writing, oil prices were stable, easing concerns about supply disruptions. WTI crude oil futures were hovering around $76.92 per barrel at the time of last check.
Elsewhere, European markets are expected to open mixed on Friday as investors await the release of US PCE inflation data.
Asia-Pacific markets end lower on Friday
Most indexes in the Asia-Pacific region ended in the red on Friday.
Hong Kong’s Hang Seng Index and Shenzhen Composite Index ended 1.6% and 1.06% lower, respectively, while China’s Shanghai Composite Index rose 0.14%. Meanwhile, Japan’s Nikkei Stock Average fell 1.34% and the TOPIX index ended down 1.35%.
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