US Stock Futures Overview

US stock futures hovered just below the flatline as traders prepared for fresh economic readings on Friday. Investors will assess consumer spending and inflation figures to gauge the state of the US economy, anticipating potential Federal Reserve interest rate cuts later this year.

1. Futures Muted

US stock futures were broadly muted on Friday, with investors awaiting a slew of economic data, including new consumer spending figures and the Federal Reserve’s preferred gauge of inflation.

By 06:31 ET (10:31 GMT):
– Dow futures: mostly unchanged
– S&P 500 futures: shed 5 points (0.1%)
– Nasdaq 100 futures: edged down by 43 points (0.2%)

The S&P 500 recorded its third record close this week on Thursday, adding 23 points (0.4%). Underpinning this increase were figures showing weekly jobless claims dropped more than expected, alongside a GDP reading confirming a 3% growth in the second quarter.

2. Consumer Spending and PCE Data Ahead

Investors will closely monitor personal spending and inflation data, which may provide insights into the US economy’s health as the Fed nears more expected rate cuts this year.

• Personal spending: expected to grow by 0.3% in August (down from 0.5%).
• PCE price index: expected to rise by 0.2% month-on-month in August, matching July’s pace, with a year-on-year forecast cooling to 2.3% from 2.5%.

Excluding volatile items, the PCE price index is projected to remain aligned with July’s rate of 0.2% month-on-month and increase slightly to 2.7% year-on-year from 2.6%.

3. Intel and US Government Funding Deal

Intel (NASDAQ: INTC) and the US government are expected to finalize an $8.5 billion funding deal by year-end, according to the Financial Times. Discussions are in advanced stages, but potential acquisition talks could disrupt negotiations. Intel is also undergoing cost-cutting measures to stabilize its operations.

4. Costco Revenue Disappoints

Costco (NASDAQ: COST) reported fiscal Q4 revenue falling short of analyst estimates amid reduced spending on big-ticket items and lower gasoline prices. Revenue slightly rose by almost 1% to $79.69 billion, below expectations of $79.93 billion, while net income of $5.29 per share exceeded expectations.

5. Oil Market Update

Oil prices saw slight increases on Friday after earlier losses as traders assessed China’s stimulus measures and potential increased output from Libya and OPEC+. As of 06:47 ET:
– Brent crude: up 0.3% to $71.30 per barrel
– US WTI crude: up 0.4% to $67.94 per barrel

In Libya, factions reached an agreement to resolve a dispute affecting oil production, suggesting that over 500,000 bpd could return to markets. Meanwhile, OPEC+ plans to reverse 180,000 bpd of output cuts in December, balancing supply outlook with China’s recent stimulus measures.