Stock futures start month slightly lower after major indices posted gains in May
Traders on the floor of the New York Stock Exchange.
Stock futures are slightly lower in overnight trading after the major indices posted gains in May.
Futures contracts on the Dow Jones Industrial Average fell 35 points, or 0.10%. S&P 500 futures fell 0.09% and Nasdaq 100 futures fell 0.03%.
The moves in overnight trading come after the Dow Jones Blue Chip and the S&P 500 gained 1.93% and 0.55% respectively in May to mark their fourth consecutive positive month. The S&P 500 closed Friday just 0.8% off its record.
Small-cap Russell 2000 rose 0.11% in May to post its eighth consecutive positive month – its longest monthly winning streak since 1995.
The Nasdaq gained 2.06% last week to post its best weekly performance since April. However, the high-tech composite lost 1.53% in May, breaking a 6-month winning streak.
A key indicator of inflation – the basic personal consumption expenditure index – rose 3.1% in April from a year earlier, faster than the expected increase of 2.9%. Despite the warmer-than-expected inflation data, Treasury yields fell on Friday.
“Overall, given the market reaction to [Friday]In PCE’s PCE publication, investor concerns about inflation may have been overstated – or may have already been addressed, ”Chris Hussey, managing director of Goldman Sachs, said in a note.
“A consensus may be building that the inflation we see today is ‘good’ inflation – the kind of price hike that accompanies faster growth, not a monetary policy error. “Hussey said.
Investors are awaiting the Federal Reserve meeting scheduled for June 15-16. The key for the markets is whether the Fed is starting to believe that inflation is higher than expected or that the economy is strengthening enough to grow without as much monetary support.
May’s jobs report, due for release on Friday, will provide key reading on the economy. According to Dow Jones, economists expect to see about 674,000 jobs created in May, after the far fewer than expected 266,000 jobs added in April.
Zoom Video Communications and Hewlett Packard Enterprise are expected to release their quarterly results Tuesday after the bell.
– CNBC’s Patti Domm contributed reporting.