U.S. Stock-index futures slightly higher after PCE, economic data.
The Federal Reserve’s preferred inflation gauge rose 4.9% in April from a year ago, a still-elevated level that nonetheless indicated that pressures could be easing a bit.
That increase in the core personal consumption expenditures price index was in line with expectations and reflected a slowing pace from the 5.2% reported in March. The number excludes volatile food and energy prices that have been a major contributor to inflation running around a 40-year peak.
Market Snapshot
At 08:38 a.m. ET, Dow e-minis were up 82 points, or 0.25%, S&P 500 e-minis were up 22 points, or 0.54%, and Nasdaq 100 e-minis were up 110.25 points, or 0.9%.
Pre-Market Movers
Gap(GPS) – Gap shares slumped 19.8% premarket action after the apparel retailer slashed its full-year earnings forecast and posted a wider-than-expected quarterly loss. Gap’s results were hit by higher costs for shipping and deeper levels of discounting.
Canopy Growth(CGC) – The cannabis producer reported a wider-than-expected quarterly loss, with revenue that also fell short of analyst forecasts. The company said it expects to be profitable on an adjusted basis in fiscal 2024. Canopy Growth slid 11.7% in premarket trading.
Costco(COST) – Costco beat top and bottom-line estimates for its most recent quarter, but the warehouse retailer’s profit margins shrank by nearly 1 percentage point due to increased costs for labor and freight. Costco said it was increasing prices for certain food items to offset those increases. Its stock lost 1.8% in the premarket.
Dell Technologies(DELL) – Dell surged 9.3% in premarket trading, following better-than-expected profit and revenue for its latest quarter. The computer hardware maker benefited from a jump in demand from businesses for desktop and laptop computers.
Pinduoduo(PDD) – The China-based e-commerce platform operator’s quarterly results were better than expected as China’s Covid-19 lockdowns helped boost online spending. Pinduoduo rallied 8.6% in premarket action.
Big Lots(BIG) – The discount retailer’s shares tumbled 19.6% in the premarket after missing Wall Street forecasts for quarterly earnings and revenue. The company also reported a larger-than-expected slump in comparable-store sales and issued cautious full-year guidance, saying inflationary pressures reduce discretionary spending.
Hibbett(HIBB) – The sporting goods retailer’s stock slid 8% in premarket trading after falling short of analysts’ profit and sales estimates for the latest quarter. Hibbett said its customers had less discretionary income than in the year-earlier quarter when stimulus payments helped boost spending.
Ulta Beauty(ULTA) – Ulta shares jumped 7.6% in premarket trading after the cosmetics retailer beat Street forecasts with its latest quarterly report and issued an upbeat outlook. Ulta was helped by strong demand for beauty products.
American Eagle Outfitters(AEO) – American Eagle tumbled 12.3% in premarket trading after its quarterly profit and revenue fell short of Wall Street estimates. The apparel retailer’s CEO, Jay Schottenstein, said the quarter was a challenging one with demand well below the company’s expectations.
Red Robin Gourmet Burgers(RRGB) – The restaurant chain’s shares surged 12.2% in premarket action after it reported a smaller-than-expected quarterly loss and revenue that exceeded analyst forecasts. Red Robin also updated its commodity cost guidance for the full year, due to the effects of inflation.