American markets are expected to be on a positive note after the publication of reassuring inflation data. The PCE core price index, a measure monitored by the Fed, rose 2.7% annually as expected. Household income and consumption disappointed. On the values side, Costco published quarterly results below analysts’ expectations. A few minutes before the first exchanges, futures on the S&P 500 and the Nasdaq Composite advanced by 0.12% and 0.16% respectively.
Yesterday on Wall Street
US markets closed in positive territory thanks to support from China and the technology sector. Micron stood out after revealing better than expected outlook for the first quarter. Before the inflation data this Friday, investors were treated to some statistics. If weekly unemployment claims came out lower than expected, orders for durable goods surprised favorably. The Dow Jones rose 0.62% to 42,175 points while the Nasdaq gained 0.60% to 18,190 points.
Macroeconomic figures
The American PCE price index increased by 2.2% in August on an annual basis against a consensus of 2.3%, after 2.5% in July. The monthly increase is 0.1%, compared to a consensus of 0.2% after 0.2% the previous month. In its core version, monitored by the Fed, the PCE price index increased by 2.7% annually as expected, and to 0.1% monthly versus a consensus of 0.2%.
American household income increased by 0.2% in August against a consensus of 0.4%, after an increase of 0.3% in July American household consumption increased by 0.2% in August against 0 .3% expected, after an increase of 0.5% in July.
The University of Michigan September Consumer Confidence Index will be released at 4 p.m.
Values to follow
Cisco
Cisco, a specialist in networking equipment, announced the inauguration of its first manufacturing plant in Chennai, India. Its activity is expected to generate more than $1.3 billion in revenue and create 1,200 jobs in the region. Cisco collaborated with Flex to create this installation.
Costco
Costco fell 1.3% in pre-market trading. The American distribution chain in warehouse format reported quarterly results below analysts’ expectations. The firm reported revenue of $79.70 billion, below the consensus target of $79.97 billion. On the other hand, its net profit per share came to $5.29 per share, exceeding expectations ($5.08 per share). Quarterly net profit increased 7% to $2.35 billion.
Intel
Intel and the US government are working to finalize $8.5 billion in funding for the chipmaker by the end of the year, the Financial Times claims. Discussions are at an advanced stage, but there is no guarantee that they will be finalized before the end of 2024, according to the daily, which adds that any takeover of all or part of Intel’s activities would risk disrupting the talks.
source : AOF
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