Wall Street Futures Rise on Tame Inflation Report

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US stock futures perked up after another tame inflation report kept the 10-year Treasury note below 3.0% and lowered the risk for the Federal Reserve to broaden its current interest rate objective. The consumer price index increased by just 0.2% in April, below the consensus estimate for a 0.3% gain. Excluding the volatile food and fuel segment, consumer prices were up by just 0.1%, also below the estimated +0.2%.

Additionally, initial jobless claims were unchanged in the latest survey week, but at 211,000 continue to hover at a nearly five decade low.

The overnight session weathered a torrent of headlines that raised geopolitical risks. Tensions between Israel and Iran escalated with Israel lobbing missiles into Syria. The military action was considered by many to be the "most direct confrontation [between Israel and Iran] in decades," and comes on the heels of the U.S.'s decision to withdraw from the Iranian nuclear deal and impose draconian sanctions on Tehran.

A surprise election in Malaysia ended the 61-year rule by the United Malays National Organization and roiled emerging markets, while German chancellor Angela Merkel lamented that Europe can no longer rely on the U.S. for protection.

Separately, the Bank of England voted 7-2 to keep rates unchanged and to practice restraint in further rate hikes, sending the British pound reeling, while U.S./North Korean relations improved with the release of three Americans.

In commodities, the price of oil continues to climb with West Texas Intermediate crude up for a sixth-straight day at another three-and-a-half year high, the flight-to-safety raised gold prices by $9 per ounce and pushed the yield on the 10-year Treasury note down by 4 basis points to 2.96%.

In corporate news, shares of Ford ( F ) are under pressure after the company suspended production of its popular F-150 truck after a fire at a supplier's factory caused it to run out of supplies.

-Dow Jones Industrial up 0.26%

-S&P 500 futures up 0.33%

-Nasdaq 100 futures 0.36%


Nikkei up 0.39%

Hang Seng up 0.89%

Shanghai Composite up 0.51%

FTSE-100 up 0.11%

DAX-30 up 0.27%


(+) Large cap tech: Higher

(+) Chip stocks: Higher

(+) Software stocks: Higher

(+) Hardware stocks: Higher

(+) Internet stocks: Higher

(+) Oil stocks: Higher

(+/-) Biotech stocks: Flat

(+/-) Drug stocks: Flat

(+) Financial stocks: Higher

(+/-) Retail stocks: Mixed

(-) Industrial stocks: Lower

(+) Airlines: Higher

(+/-) Autos: Mixed


(+) ARMO (+67.17%) To be acquired by Eli Lilly ( LLY ) for $50 per share

(+) HEAR (+55.62%) Reported strong Q1 results and raised FY18 guidance

(+) VTVT (+31.58%) Will pre-specify new subgroup with FDA and report phase 3 part B results in June


(-) MDCA (-19.71%) Missed Q1 EPS by $0.44 on below-consensus revenue

(-) HDSN (-19.02%) Reported weaker-than-expected Q1 results

(-) NUAN (-14.66%) Q2 profit below expectations, revenue beats estimates

(-) MYO (-14.45%) Q1 profit and sales below Wall Street's estimates

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Investing , Stocks
Referenced Symbols: F , LLY ,

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