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Stock index futures pointed to a lower opening Friday but inflation data before the bell will likely influence sentiment.
Nasdaq 100 futures (NDX:IND) -0.3%, S&P futures (SPX) -0.3% and Dow futures (INDU) -0.2% were lower.
Amazon weighed as it fell premarket, erasing a post-earnings pop with caution on cloud growth.
For the week, the S&P 500 (SP500) is flat, the Nasdaq Composite (COMP.IND) is up 0.6% and the Dow (DJI) is little changed.
Rates were lower. The 10-year Treasury yield (US10Y) fell 6 basis points to 3.47%. The 2-year yield (US2Y) fell 7 basis points to 4.03%.
On the economic calendar, the March personal income and spending hit before the bell. Economists expect a 0.2% rise in income and a 0.1% drop in spending. The core PCE price index is forecast to rise 0.3%, dipping to an annual rate of 4.5%.
“Excitement is reduced by yesterday’s first quarter GDP data, which reminded investors (again) never to short the hedonism of the US consumer,” UBS’ Paul Donovan said. “Today’s data should show slower consumer activity, and falling real spending will reflect the consequences of two years of falling real incomes.”
“Personal income and spending data in the US includes the personal consumer expenditure deflator,” Donovan said. “Until Federal Reserve Chair Powell’s June policy errors, the core version of this was the preeminent inflation target – now somewhat diluted. The GDP data hints at an increase in the core inflation measure today, but this is not certain (as previous month’s data may be revised).”
At the same time, the Q1 employment cost index arrives. The consensus is for a 1.1% rise on the month.
“We’re expecting today’s Q1 employment costs data to confirm that wage growth continues to slow,” Pantheon Macro said. “It’s probably asking too much to see the ECI private wage measure match the 3.8% annualized increase in Q1 hourly earnings, but we nonetheless hope for a clear slowing from the Q4 pace.”
The Chicago PMI is out shortly after the opening bell. Economists predict a dip to 43.5.
