Stock Futures Muted After Key Inflation Data

The PCE price index rose 4.7% over the past 12 months

Deputy Editor
May 26, 2023 at 9:04 AM
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Stock futures are struggling for direction ahead of the open, as investors unpack a slew of economic data to finish out the week. Inflation remained high in April, per the personal consumption expenditures (PCE) price index, which rose 0.4% for the month and 4.7% on an annual basis.

Elsewhere, durable goods rose 1.1%, and the U.S trade deficit in goods jumped 17% to $96.8 billion. On the political front, a debt ceiling agreement appears to be making progress, with a rumored two-year deal that caps spending on everything but military and veterans, per a U.S. official.

Continue reading for more on today's market, including:

  • Understanding options assignment and the risk involved. 
  • 3 retail stocks that made big post-earnings swings. 
  • Plus, stocks making outsized moves after this morning's reports. 

Futures MAy26

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1.5 million call contracts and 850,212 put contracts exchanged on Thursday. The single-session equity put/call ratio fell to 0.56 and the 21-day moving average stayed at 0.70.
  2. Marvell Technology Inc (NASDAQ:MRVL) is up 16.6% premarket, after the semiconductor name beat top- and bottom-line estimates in the first quarter. No fewer than 13 analysts lifted their price targets after the event. Heading into today, the stock is 33.6% year-to-date. 
  3. Ulta Beauty Inc (NASDAQ:ULTA) is down 9.9% before the bell, despite the company's strong first-quarter results and raised sales forecast, after comparable sales missed estimates. Plus, the retailer cut its annual operating margin forecast. No fewer than 13 analysts slashed their price targets on ULTA. Year-to-date, the equity is up 3.4%. 
  4. Workday Inc (NASDAQ:WDAY) is up 9.5% in electronic trading, after the company's better-than-expected first-quarter results. Workday also lifted its subscription revenue guidance, and a flood of analysts lifted their price targets. WDAY is up 17.4% since the start of the year. 
  5. See what economic data and earnings are scheduled for next week. 


Whole Globe Unpacks Economic Data

The stateside tech rally helped stocks in Asia rise to close the week, while Hong Kong’s market was closed for a holiday. Japan’s Nikkei rose 0.4%, even after government data showed the country’s 12-month consumer price index (CPI) came in at 3.2%, while its core inflation reading rose at its fast year-over-year pace since 1982. China’s Shanghai Composite also tacked on 0.4%, while South Korea’s Kospi rounded out the region with a 0.2% pop.

European markets are higher this afternoon, as investors closely monitor U.S. debt ceiling negotiations. Germany’s DAX is up 0.4% at last glance, after reports showed Europe’s largest economy yesterday entered a technical recession. London’s FTSE 100 sports a 0.3% midday lead, after U.K. retail sales volume rose 0.5% in April – higher than economists anticipated – and the International Monetary Fund (IMF) agreed with the Bank of England’s (BoE) view that a recession will not happen this year.  Lastly, the CAC 40 in France was last seen 0.5% higher.



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