S&P 500, Nasdaq futures gain as January inflation reading is as expected: Live updates – CNBC
Traders work on the floor at the New York Stock Exchange on Jan. 29, 2024.
Brendan Mcdermid | Reuters
Stock futures ticked higher after a key inflation metric met economists’ expectations.
Futures tied to the Dow Jones Industrial Average added 91 points, or 0.2%. S&P 500 futures and Nasdaq 100 futures gained 0.3% and 0.6% each.
Data showed the Federal Reserve’s preferred measure of inflation was stubbornly above the central bank’s target in January, but at least didn’t exceed Wall Street forecasts. There were also signs that consumer spending remains robust.
The personal consumption expenditures price index is the Federal Reserve’s preferred inflation gauge. The core PCE index, which excludes volatile food and energy costs, increased 0.4% for the month and 2.8% from a year ago, with matched the Dow Jones consensus estimate. Headline PCE, which includes food and energy categories, increased 0.3% monthly and 2.4% on a 12-month basis, compared to respective estimates for 0.3% and 2.4%.
Meanwhile, personal income rose 1% month-over-month in January, well above the forecast for 0.3%.
Salesforce slipped 1% on weak revenue guidance, while Snowflake shed 20.2% after announcing the retirement of its CEO and sharing disappointing product revenue guidance. Okta popped nearly 23% on strong results.
Thursday’s session caps off February trading and another positive month for the three major averages, despite a string of declines raising questions around the sustainability of the AI-driven rally. The Nasdaq is leading the pack with a 5.2% gain. The S&P 500 has jumped 4.6%, while the Dow has added 2.1%. This would mark the Dow’s first four-month winning streak since May 2021.
The back end of earnings season continues Thursday with results from Best Buy, Hewlett Packard Enterprises and Bath & Body Works.
New York Federal Reserve Bank President and CEO John Williams is also slated to moderate a discussion in the evening.
Rates will stay higher for longer until the summer, portfolio manager says
The January personal consumption expenditures price index came in line with the Dow Jones’ consensus expectations, emphasizing the possibility that the Federal Reserve will make the first of its rate cuts starting in June.
“Today’s print comes as no surprise following the CPI and PPI inflation reports earlier this month. Inflation continues to fall gradually, while economic growth is strong and the consumer is healthy,” said Damian McIntyre, a portfolio manager at Federated Hermes. “Higher-for-longer rates will likely stay with us until summer.”
— Lisa Kailai Han
Fed’s preferred inflation gauge comes in line with expectations
The core personal consumption expenditures price index rose in line with expectations, climbing 0.4% month over month in January and 2.8% year over year.
The overall PCE, which includes volatile food and energy prices, increased 0.3% month over month and 2.4% year over year. Those numbers also matched Dow Jones consensus estimates.
— Fred Imbert
Snowflake, C3.ai among Thursday’s biggest premarket movers
These are some of the stocks making the biggest moves before the bell:
- Snowflake — The cloud data company sank after posting disappointing product revenue guidance for the first quarter and announcing that CEO Frank Slootman is retiring.
- C3.ai — The artificial intelligence software stock popped more than 15% on robust earnings.
- Okta — The identity-management company surged more than 25% on the back of a stronger-than-expected quarter and outlook for the current period.
Read the full list of stocks on the move here.
— Samantha Subin
Treasury yields tick higher ahead of PCE
U.S. Treasury yields were up slightly as traders awaited the latest PCE report. The benchmark 10-year Treasury note yield was up 3 basis points at 4.303%. The 2-year note yield also climbed 3 basis points to 4.679%.
Yields tick higher
— Fred Imbert
Dow heads for fourth straight winning month for first time in nearly three years
NEW YORK, NEW YORK – JANUARY 22: Traders work on the floor of the New York Stock Exchange during afternoon trading on January 22, 2024 in New York City. The Dow Jones and S&P both hit all time highs with the Dow Jones closing over 38,000 points for the first time ever as stocks continue to rise.
(Photo by Michael M. Santiago/Getty Images)
Michael M. Santiago | Getty Images News | Getty Images
All the major averages are headed for another winning month, with the Nasdaq up 5.1% and the S&P 500 on pace for a 4.6% gain.
Even more notable is the Dow’s streak. If it closes tomorrow’s session in positive territory for February, the 30-stock index would clinch its fourth straight winning month for the first time since a streak ended in May 2021. The index is currently up 2.1% month to date.
— Samantha Subin, Chris Hayes
Snowflake, Okta among stocks making the biggest moves after the bell
The New York Stock Exchange welcomes Snowflake to usher in the first day of winter, Dec. 21, 2021. To honor the occasion, Snowflake the bear, joined by Chris Taylor, Vice President, NYSE Listings and Services, rings the opening bell.
NYSE
These are some of the stocks on the move after the bell:
- Snowflake — Snowflake shares plunged 21% after the business software company announced the retirement of its CEO Frank Slootman. The news coincided with better-than-expected quarterly results, but weaker-than-expected product revenue guidance for the first quarter.
- Duolingo — The language learning platform skyrocketed 22% after surpassing quarterly estimates and posting strong monthly average user and bookings figures. Duolingo also provided strong revenue guidance for the first quarter and full year.
- Okta — Okta rallied 24% on better-than-expected quarterly results and first-quarter guidance.
Read the full list of stocks on the move here.
— Samantha Subin
Stock futures open lower
