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U.S. equity index futures mixed, little changed
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U.S. initial jobless claims 264k vs 245k est
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U.S. Apr PPI MM, YY < ests
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U.S. Apr PPI ex-food/energy MM in-line with est, YY < est
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Euro STOXX 600 index up ~0.2%
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Dollar, gold rise; crude, bitcoin decline
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U.S. 10-Year Treasury yield slides to ~3.35%
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U.S. STOCK FUTURES LITTLE CHANGED AFTER DATA (0900 EDT/1300 GMT) U.S. equity index futures are little changed in the wake of the release of the latest data on U.S. jobless claims and inflation. Initial jobless claims were greater than expected. The April PPI, on a month-over-month, and year-over-year basis came in below estimates. The month-over-month ex-food/energy print was in-line with the Reuters Poll, while on a year-over-year basis it was below the estimate:
According to the CME's FedWatch Tool, the probability that the FOMC will leave rates unchanged at their June 13-14 meeting is now 97% from 96% just before the numbers were released. There is now around a 3% chance of a 25 basis point rate increase vs 4% prior to the data coming out. The probability of a 25 basis point cut at the July meeting is now 47% from 39% before the numbers came out. CME e-mini S&P 500 futures are edging down vs roughly flat in the moments before the numbers came out.
A majority of S&P 500 sector SPDR ETFs are lower in premarket trade, but changes are relatively modest. Energy is taking the biggest hit, off about 0.8%, while communication services is leading gainers with a 0.25% rise. Meanwhile, with PacWest Bancorp sliding ahead of the open, the SPDR S&P regional banking ETF is quoted down more than 1.5%. Paul Hickey co-founder at Bespoke Investment Group was out with a quick reaction to the mornings data: "Investors can debate over whether or not the FOMC should be cutting rates later this year, but given the continued weaker trend of data and stress in the banking sector, any continuation of rate hikes in June would be completely out of touch." Here is a premarket snapshot from shortly before 0900 EDT:
(Terence Gabriel, Sinéad Carew)
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(Terence Gabriel is a Reuters market analyst. The views
expressed are his own)
