Dow futures edge higher; PPI data in spotlight By Investing.com



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Investing.com — U.S. stock futures traded in a mixed fashion Friday, ahead of more inflation data which could provide more clarity regarding future interest rate moves.

By 06:30 ET (10:30 GMT), the contract was up 25 points, or 0.1%, while edged lower and dropped 25 points, or 0.2%.

The main equities indices closed marginally higher Thursday, as initial enthusiasm after the July report on consumer prices waned. 

The blue chip gained 50 points, or 0.2%, on course for a weekly gain of 3%. The tech-heavy and the broad-based posted small gains, but both are set to register their second straight losing week.

July producer prices due

There is another form of inflation reading scheduled for release later Friday, in the form of the , providing more information for Fed policymakers ahead of the September policy-setting meeting.

Thursday’s U.S. showed that annual headline inflation in the world’s largest economy rose by less than expected in July, bolstering projections that the Federal Reserve may soon back away from its long-running campaign of hikes.

However, with inflation remaining well above the Fed’s medium-term target, markets trimmed their expectations for a rate cut this year, with rates expected to remain at 22-year highs.

The , which gauges the selling prices received by domestic producers, is expected to have risen 0.7% annually and 0.2% monthly in July. The , which removes food and energy, is seen picking up the pace slightly to 0.2% month-on-month, but slowing marginally to 2.3% year-on-year.

Additionally, the University of Michigan is due to release its latest reading later in the session, and it is expected to slip to 71, from 71.6 in the prior reading.

News Corp eyes AI opportunities

The quarterly earnings season is near an end, but News Corp (NASDAQ:) is likely to be in the spotlight after the owner of the Wall Street Journal and the Sunday Times saw fall by almost a tenth in the latest quarter, resulting in a three-month loss.

Chief Executive Officer Robert Thomson outlined the group’s wider plans to adjust to the emergence of generative artificial intelligence. Calling it a “challenge” to the maintenance of publishers’ intellectual property, Thomson said generative AI still represents a “remarkable opportunity” to build fresh revenue sources and slash costs.

Crude remains supported by tight supplies

Oil prices edged higher Friday, trading near their highest levels since January, underpinned by tightening global supply.

The said demand growth for oil next year will be slower than previously forecast, citing lackluster macroeconomic conditions, but warned global inventories could draw down sharply over the rest of 2023, potentially driving prices still higher.

The said on Thursday that it still expects world oil demand to rise by 2.25 million barrels per day in 2024, compared with growth of 2.44 million barrels per day this year.

By 06:30 ET, futures traded 0.3% higher at $83.09 a barrel, while the contract climbed 0.4% to $86.72. 

Additionally, edged 0.1% higher to $1,949.95/oz, while traded 0.1% higher at 1.0993.

(Oliver Gray contributed to this item.)

 


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