Stock futures were trading near the flatline on Thursday night as investors awaited a key inflation reading. Dow Jones Industrial Average and S&P 500 futures were little changed, while Nasdaq 100 futures ticked slightly higher. Costco Wholesale slipped 1% in after-hours trading after posting a revenue miss for the fiscal fourth quarter, reporting earnings of $5.29 per share on $79.70 billion in revenue.
The trading session on Thursday ended with gains, with the S&P 500 closing at a new record for the third time in the week and the Nasdaq Composite notching its fourth straight winning day. Economic data released on Thursday, including a drop in initial jobless claims and a final reading of second-quarter GDP growth at a 3% annualized rate, reassured investors of the strength of the U.S. economy.
LPL Financial chief economist Jeffrey Roach noted that markets are pleased with the Federal Reserve’s actions to recalibrate policy. Investors are closely watching for the release of August’s personal consumption expenditures price index, the Fed’s preferred inflation metric. Economists expect headline PCE to have risen at a 2.3% annualized pace, with a 0.1% increase from the prior month, hoping for figures that show a cooling trend.
For the week, the three major indexes are higher, with the S&P 500 up nearly 0.8%, the Dow Jones Industrial Average on track for a 0.3% gain, and the Nasdaq Composite set for a 1.4% advance. The focus remains on economic data and the Fed’s actions, with markets reacting to news of the strength of the labor market and GDP growth, while awaiting the PCE price index release on Friday morning. Market sentiment is positive as investors navigate inflation concerns and policy recalibration.
