Wall Street is seeing small gains in early trading on Friday as the market tries to end another up-and-down week on a positive note. Futures for the S&P 500 and the Dow Jones Industrial Average are both up less than 0.2% before the bell.
This week has been marked by mixed economic data, with one report showing that inflation was slightly higher at the wholesale level last month than economists had expected. This trend of higher-than-expected inflation data has dampened hopes for an interest rate cut by the Federal Reserve at its upcoming meeting next week.
Despite some softening in the economy, there are still hopes that the long-term trend for inflation remains downward, leading to expectations that the Fed will cut rates three times this year, starting in June. Fed officials will provide their latest forecasts for interest rates on Wednesday following their policy meeting.
In off-hours trading, software maker Adobe saw its shares tumble 11.2% after giving tepid guidance, despite beating sales and profit targets. Similarly, Ulta Beauty, the cosmetics retailer, saw its shares slide 7.2% after issuing guidance that left investors wanting.
In global markets, European stocks were mostly higher, with Germany’s DAX up 0.4%, the FTSE 100 in London up less than 0.1%, and the CAC 40 in Paris jumping 0.6%. In Asia, the Nikkei 225 in Tokyo declined 0.3%, while shares in automakers Honda and Nissan rose ahead of their collaboration announcement in electric vehicles and auto intelligence technology.
China’s market watchdog announced that regulators will tighten standards for listing companies, citing a gap between the quality of listed companies and the expectations of investors. In Australia, the S&P/ASX 200 shed 0.6%.
In the bond market, Treasurys leveled off after a rise on Thursday, with the 2-year holding at 4.69% and the 10-year at 4.27%. In early trading, U.S. benchmark crude oil lost 47 cents to $80.79 per barrel, while the dollar rose against the Japanese yen and the euro.
On Thursday, the S&P 500 fell 0.3%, the Dow industrials lost 0.4%, and the Nasdaq composite finished down 0.3%. As the week comes to a close, investors will be watching closely to see how the market reacts to the latest economic data and upcoming Fed meeting.
