LIVE MARKETS-Tech bargain hunting lifts futures despite mixed PPI report
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TECH BARGAIN HUNTING LIFTS FUTURES DESPITE MIXED PPI REPORT
E-mini S&P 500 futures EScv1 are higher on the day, but little changed from where they were after the release of the latest Producer Price Index (PPI), as well as jobless claims data. The futures are now up around 0.5% vs. gain of around 0.4% shortly before the numbers came out. The futures were already higher as investors sought bargains in beaten-down tech names and took heart from signs of progress in peace talks between the U.S. and Iran.
May PPI on a month-over-month basis came in at 1.1% vs. a 0.7% estimate. The year-over-year print was 6.5% as compared to the 6.4% Reuters Poll. Ex-food/energy on a month-over-month basis came in at 0.4% vs. a 0.5% estimate. On a year-over-year basis, the ex-food/energy reading came in at 4.9% vs. the 5.4% Reuters Poll.
All four readings for April were revised lower.
Initial jobless claims printed at 229,000 vs. a 219,000 estimate, and 225,000 last week.
According to the CME's FedWatch Tool, the probability that the Fed leaves its current target rate of 3.50% to 3.75% unchanged at next week's June 16 to 17 FOMC meeting is unchanged at 98% versus just prior to the release of the data. The chance that the FOMC cuts rates by 25 basis points is 2%.
Looking further out into 2026, interest rate probabilities are now pricing in about 24 bps of hikes through year-end vs. about 23 bps shortly before the numbers were released.
The U.S. 10-Year Treasury Yield US10YT=RR is now around 4.53%. It was around 4.53% just before the numbers came out. The yield ended Wednesday at 4.54%.
Nearly all S&P 500 sector SPDR ETFs are higher in premarket trading with industrials XLI.P, up more than 1%, posting the biggest rise. Tech XLK.P is up about 1%. Consumer staples XLP.P, off around 0.2%, is the sole loser.
The SPDR S&P Regional Banking ETF KRE.P is up about 0.5%. The Invesco PHLX Semiconductor ETF SOXQ.O is rallying more than 2%.
Here is a premarket snapshot from around 8:51 a.m. ET.
(Terence Gabriel)
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EARLIER ON LIVE MARKETS:
EUROPE AT HALF-TIME: COUNTDOWN TO ECB'S 'INSURANCE HIKE' CLICK HERE
A RECORD WEEK FOR VOLATILITY IN SEOUL CLICK HERE
FRIDAY'S TECH SELLOFF VS TUESDAY'S CLICK HERE
POSITIVE START CLICK HERE
EUROPE BEFORE THE BELL: NOT YOUR EVERYDAY CEASEFIRE CLICK HERE
TECH AND WAR JITTERS SAP CONFIDENCE CLICK HERE