July 30 - U.S. stock index futures edged upward on Thursday as market participants digested a sequence of domestic economic statistics that included the June inflation report and the advance estimate of second-quarter gross domestic product.
Data from the Commerce Department showed the Personal Consumption Expenditures (PCE) Price index fell 0.1% in June. On an annual basis the PCE index stood at 3.7%, matching the expectation in the Reuters economist poll. The core PCE reading - which excludes volatile food and energy components - rose 0.1% month-on-month, against a 0.2% monthly increase that had been anticipated, and registered 3.3% year-on-year, in line with forecasts.
Separately, the advance gross domestic product report indicated the U.S. economy expanded at a 1.5% annualized rate in the second quarter, below the 2.1% growth that had been estimated.
Labor market data released for the week ended July 25 showed initial jobless claims totaled 197,000, a touch lower than the 200,000 claims economists had expected.
Market moves
By 08:31 a.m. ET, futures were higher across major benchmarks. Dow E-minis were up 231 points, or 0.45%. S&P 500 E-minis rose 48.25 points, or 0.66%. Nasdaq 100 E-minis gained 404 points, or 1.48%.
What the numbers show
- The headline PCE price index declined 0.1% in June, and stood at 3.7% year-over-year.
- Core PCE rose 0.1% on the month and was 3.3% on an annual basis.
- Advance Q2 GDP growth was reported at 1.5%, below the 2.1% estimate.
- Weekly initial jobless claims were 197,000 versus an expected 200,000.
Implications and context
The collection of readings presents a mixed picture: inflation data showed a slight monthly decline in the headline PCE but the core measure posted a modest monthly uptick smaller than expectations, while the advance GDP estimate came in well under predicted growth. Weekly jobless claims were marginally stronger than forecast.
Investors reacted with modest buying in index futures, lifting benchmark contracts in early trading. The data set will be part of the information investors weigh when assessing economic momentum and its potential influence on asset prices.