tl;dr
Stock index futures were little changed on Thursday, a day after a softer-than-expected retail inflation data pushed the major market averages to close at record highs. Nasdaq 100 futures (US100:IND) 0.1%, S&P 500 futures (SPX) -0.1% and Dow futures (INDU) was unchanged. The 10-year Treasury yield ...
Stock index futures were little changed on Thursday, a day after a softer-than-expected retail inflation data pushed the major market averages to close at record highs. Nasdaq 100 futures (US100:IND) 0.1%, S&P 500 futures (SPX) -0.1% and Dow futures (INDU) was unchanged. The 10-year Treasury yield (US10Y) was flat at 4.34% and the 2-year yield (US2Y) was unchanged at 4.75%. See how Treasury yields have done across the curve at the Seeking Alpha bond page. Wall Street's benchmark indices on Wednesday touched new record intraday highs each, while Treasury yields fell to their lowest levels in more than a month, as the latest Consumer Price Index report strengthened bets for interest rate cuts by the Federal Reserve. "There was the slightest hint of stagflation in what was a big day in global macro yesterday, but markets were in no mood to countenance such a view as a small miss in headline CPI helped ignite a rates rally," Deutsche Bank's Jim Reid said. April CPI rose 0.3% from March, coming in a little lower than the 0.4% consensus and easing from the 0.4% pace in the first three months of the year. "Overall, our U.S. economists see the CPI print as a step in the right direction after the hot Q1 prints, but with further progress needed over the coming months to give the Fed enough confidence to cut rates on declining inflation alone," Reid added. On the economic front, investors will be looking at the weekly initial jobless claims report slated to land before the bell. The forecast is for a decline to 219K. The Philly Fed business outlook for May, forecasted to come in at 7.7, and import/export prices are also due at the same time. The export price index for April is expected to rise 0.4% on a monthly basis, while the import price index is forecasted to fall 0.2% M/M. "Initial jobless claims data may get some attention. Import and export prices are very much a second tier release, but might be more relevant as President Biden increases U.S. consumers' tax burden via tariffs," UBS' Paul Donovan said. There are a few Fed speakers lined up to talk later in the day, including Fed's Vice Chair for Supervision Michael Barr, Fed Philadelphia President Patrick Harker, Fed Cleveland President Loretta Mester and Fed Atlanta President Raphael Bostic.
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