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Stocks higher ahead of consumer sentiment

Stock futures are mostly higher on Friday, ahead of August’s import prices and the initial reading for September’s consumer sentiment. As of 7:19 AM ET, the Dow is rising 0.1%, while the S&P 500 is up 0.2%. The Nasdaq 100 is little changed relative to fair value on the GLOBEX.

 

U.S. equities were higher on Thursday, as investors digested August’s Producer Price Index (PPI), which increased slightly more than projections on a monthly basis, while rising in line with expectations on an annual basis following downward revisions to the prior month’s data. The Dow was up 0.6%, while the tech-heavy Nasdaq Composite rose 1.0%. The S&P 500 increased 0.8% with all 11 sectors finishing in positive territory. The Communication Services sector was the top performer, rising 2.0%, while the Real Estate sector was the bottom performer, rising just 0.1%.

 

On the data front today, August’s Import Price Index is expected to decrease 0.2% month-over-month (MoM) versus the prior month’s increase of 0.1%. Meanwhile, August’s Export Price Index is also projected to decrease 0.2% MoM versus the prior month’s increase of 0.7%. The preliminary reading of the University of Michigan Consumer Sentiment Index is expected to record 68.5 for September, up slightly from the prior month’s reading of 67.9. Meanwhile, September’s preliminary readings for the University of Michigan’s one- and 5-10-year inflation expectations are forecasted at 2.8% and 3.0%, both unchanged from the prior readings.


Across the pond, European stocks are higher in mid-day trading following the European Central Bank’s (ECB’s) decision to reduce rates as anticipated, implementing its second 25 basis point (0.25%) reduction this year, which lowered the key interest rate to 3.5%. The final reading for France’s August Consumer Price Index (CPI) was revised lower.

 

Overnight in Asia, stocks were mixed with the final reading for Japan’s industrial production for July being revised higher. India’s CPI unexpectedly increased in August.

 

In FOREX trading, the dollar is lower, while the euro and the Japanese yen gained strength as investors stayed on edge ahead of next week’s series of central bank meetings, headlined by the Federal Reserve (Fed) and the anticipated size of its widely anticipated interest rate cut.

 

Over in the commodity pits, West Texas Intermediate (WTI) crude oil is 1.2% higher at $69.78/barrel fueled by production disruptions in the Gulf of Mexico as hurricane Francine prompted producers to evacuate platforms before the storm made landfall on the Louisiana coast.

 

In the metals complex, gold is 0.6% higher at $2571.60/ounce following a weakening dollar.

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