U.S. stocks edged higher Thursday, maintaining a positive tone despite a hotter-than-anticipated producer prices reading dented hopes of the Federal Reserve cutting interest rates in the near future.
At 09:35 ET (13:35 GMT), the S&P 500 index rose 2 points, or 0.1%, NASDAQ Composite rose 14 points, or 0.1%, and the Dow Jones Industrial Average rose 100 points, or 0.3%.
PPI inflation, retail sales on tap as Fed meeting looms
Headline PPI inflation rose 0.6% month-on-month in February, data released earlier Thursday showed, compared with an expected 0.3% increase. Additionally, it rose 1.6% on an annual basis, versus estimated growth of 1.1%.
This indicated that inflation remains an issue, but losses have been minimal Thursday as Tuesday’s consumer price index reading for February had partially prepared the market for a hot report.
Sticky inflation gives the Federal Reserve more impetus to keep interest rates higher for longer – a trend that could weigh on stock markets in the near-term. Several central bank officials recently warned that any potential rate cuts in 2024 will be largely tied to inflation.
That said, a separate report showed U.S. retail sales rose 0.6% month-on-month in February, below the 0.8% increase expected, while the number of Americans filing for unemployment claims stood at 209,000 for the week ended March 9, indicating the labor market remains under pressure.
This data comes just days before a Fed meeting next week, where the central bank is widely expected to keep interest rates unchanged, with the June meeting still the favorite for the start of the Fed’s interest rate cutting cycle.
Under Armour (NYSE:UA) falls after CEO change, Fisker faces potential bankruptcy
In the corporate sector, Under Armour (NYSE:UA) fell 8%, with investors expressing worries about the sports apparel retailer’s strategy after the announcement of the return its founder Kevin Plank as chief executive officer given the challenging economic backdrop.
Electric vehicle maker Fisker (NYSE:FSR) slumped 45% after a WSJ report said the firm hired advisers for a potential bankruptcy filing.
Robinhood (NASDAQ:HOOD) stock soared 10% after the brokerage reported strong growth in assets under custody for the month of February, while Dollar General (NYSE:DG) surged 6.3% after the discount retailer forecast upbeat 2024 sales, expecting steady demand from price-conscious shoppers.
Crude gains on U.S. inventories draw
Oil prices rose Thursday, continuing the recent gains and remaining near four-month highs after a substantial draw in crude inventories pointed to tighter fuel supplies.
By 09:35 ET, the U.S. crude futures traded 1.2% higher at $80.69 a barrel, while the Brent contract climbed 0.9% to $84.78 per barrel.
Both contracts had risen about 3% on Wednesday, to their highest levels since late-November, after an unexpected draw in U.S. oil and gasoline inventories indicated that demand in the world’s largest fuel consumer was picking up from a winter lull, especially as more refineries resumed operations after an extended winter break.
(Ambar Warrick contributed to this article.)
https://www.investing.com/news/stock-market-news/us-stock-futures-inch-higher-with-ppi-inflation-retail-sales-data-on-tap-3337062
