Stock futures are little changed as investors brace for key inflation reports: Live updates

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Stock futures flickered near the flatline Monday evening as Wall Street braced for the release of key inflation reports.

S&P 500 futures inched down 0.04%, while Nasdaq 100 futures slipped 0.08%. Dow Jones Industrial Average futures lost 5 points, or 0.01%.

In regular trading, the 30-stock Dow slid about 0.2%. The blue-chip index posted its first losing session in nine, snapping what had been its longest daily win streak since December. The S&P 500 inched lower by 0.02%. The Nasdaq Composite was the outperformer, rising roughly 0.3%.

A report from the New York Federal Reserve showed that consumers’ expectations for inflation over the short and long term grew in April. The results put pressure on the major averages and weighed on stocks.

Another market catalyst will emerge Tuesday morning as the first of two key inflation reports will be released. The producer price index reading for April will be issued at 8:30 a.m. Eastern. Economists polled by Dow Jones anticipate that the PPI gained 0.3% from the previous month. The closely watched consumer price index will be out Wednesday, and economists expect that it rose 0.4% in April on a month-over-month basis, or 3.4% from 12 months earlier.

Even with Monday’s muted market action, the major averages remain within striking distance of their highs. Investors have been hopeful since Fed Chair Jerome Powell said earlier this month that the central bank’s next move was “unlikely” to be a rate hike, even amid a blast of hot inflation readings in recent months.

“It’s not unusual for Wall Street and Main Street to see the economy differently — the different perspective stems from different points of focus. Stock market movements are based on expectations of future economic performance, not necessarily current conditions,” said Brent Schutte, chief investment officer at Northwestern Mutual Wealth Management.

“But while these differing views aren’t unusual, they highlight a potential risk for investors who are betting that rate cuts will come before the economy falters,” he added.

These dividend payers could see a bump from AI hype, Wells Fargo says

Utilities, best known for their steady dividend payments, are enjoying a surge in popularity, thanks to excitement around artificial intelligence.

Consider that the Utilities Select Sector SPDR Fund (XLU) is up 6.8% in May alone, outperforming the Technology Select Sector SPDR Fund (XLK), which is up 5.2% this month.

Here’s how the utilities AI play goes: AI data centers are going to require a significant amount of electricity – and even as tech companies turn toward renewable energy sources, natural gas will play a key part in backing up those power needs.

See here for a list of dividend-paying utilities that could benefit from AI excitement, per Wells Fargo.

Darla Mercado

GameStop, AMC extend gains after hours

Shares of meme stock favorites GameStop and AMC soared in extended trading on Monday, following sharp moves earlier in day spurred by the re-emergence of “Roaring Kitty.”

GameStop stock climbed more than 7%, while AMC soared nearly 15%. Trading in the brick and mortar video game retailer was interrupted several times on Monday due to increased volatility.

— Brian Evans

Games Global Limited postpones IPO

Games Global Limited is postponing its initial public offering planned for May 14, the company said on Monday.

The online casino game supplier said concerns over market conditions underpinned the decision. Games Global plans to issue 14.5 million shares priced at $16 to $19 per share.

— Brian Evans

Stock futures are little changed on Monday

Stock futures were little changed on Monday with investors looking toward two key inflation reports this week.

S&P 500 futures fell 0.06%, while Nasdaq 100 futures slipped 0.07%. Dow Jones Industrial Average futures pulled back 15 points, or 0.04%.

— Brian Evans

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