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U.S. stock futures were up Thursday evening, hinting at small but consistent gains for the three major indexes when the market opens Friday.
After July’s cooler-than-anticipated consumer price index set off a sharp rise in stock prices Wednesday, equities had a milder Thursday session. Data from the Labor Department contributed to the optimism around inflation beginning to cool, as the producer price index fell half a percent in July. But stocks couldn’t hold on to their morning gains: the S&P 500 finished down 0.07%, while the Dow Jones Industrial Average ended the day up just 0.08% after declining throughout the afternoon. The tech-filled Nasdaq Composite lost 0.58%.
Inflation, and the Federal Reserve’s quest to conquer it by raising interest rates, have dominated the attention of markets in recent months and largely drove their direction this week. A consumer sentiment gauge from the University of Michigan due Friday could further clarify how consumers are feeling about prices. It also might offer investors an extra clue about how consumer demand could evolve in the coming weeks and months.
At 6:15 p.m. Eastern time, futures for the S&P 500 were up 0.14%, while futures for the Dow and Nasdaq had both risen 0.13%.
Michigan’s survey is expected to report midmonth sentiment of 52.5, according to two dozen economists surveyed by The Wall Street Journal. That would mark a slight improvement from July’s final reading of 51.5. The survey’s consumer-confidence index has plummeted this year, nearing the lowest level in the indicator’s roughly six-decade history.
“We are living through a very confusing economic moment,” Ross Mayfield, an investment strategy analyst at Baird Private Wealth Management, said. “Thanks to the millions of aftershock effects of the Covid-19 pandemic and Russia-Ukraine war, it can feel like up is down and bad is good.
“Inflation still reigns supreme in the minds of investors,” Mayfield added. “And whether the stock market has officially bottomed or not, the path forward will be determined by inflation and the reaction of the Fed.”
In corporate earnings news,
Rivian
(ticker:
RIVN
) reported better-than-expected second-quarter sales of $364 million. The electric truck and SUV maker maintained its plan of delivering about 25,000 vehicles over the course of 2022 after sending about 5,700 vehicles through the first half. Still,
Rivian
’s
net loss grew to $1.7 billion in the quarter, and the firm expects its operating loss to grow later this year. After-hour activity was volatile, but Rivian shares were down about 1% at 6:15 p.m. Eastern time.
Illumina
(
ILMN
) shares fell the most Thursday evening, dropping 15%, as the biotech firm admitted that its second-quarter results didn’t meet its own expectations. On a generally accepted accounting principles (GAAP) basis, the company lost $3.40 per share in the most recent quarter after earning $1.26 per share during that period a year ago.
Illumina
chief executive Francis deSouza said “challenges in a complex macroeconomic environment more than offset” growth in genome sequencing runs on the company’s platforms.
Still, most companies in the S&P were trending higher Thursday evening, led by
MTCH
), up 3.4%;
Equifax
(
EFX
), up 2.6%;
NOC
), up 2.5%; and
CZR
), which rose 2.3%.
Shares in large tech stocks like
Apple
(
AAPL
) and
Intel
(
INTC
) were trading at high volume and rising slightly, up 0.14% and 0.22%, respectively. Other after-hours leaders included
SMAR
), which gained 5.9%, and
GH
), which rose 5.3%.
Broadridge Financial Solutions
(
BR
),
SPB
), and
PCT
), among others, release their latest earnings before the opening bell on Friday.
Write to editors@barrons.com
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