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 came in line with economists’ expectations.
Futures tied to the Dow Jones Industrial Average added 107 points, or 0.3%. S&P 500 futures and Nasdaq 100 futures gained 0.3% and 0.6% each.
Data showed inflation was still sticky in January but not rising by as much as feared. And there were signs of a resilient consumer in the numbers.
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.
