U.S. Stock Futures Are Lower While Market Swings Become Even More Common Place
U.S. stock futures are lower: Markets swings are becoming even more commonplace as investors process both earnings and economic data. Weaker earnings results are driving futures lower this morning post yesterday’s recovery for all three major averages. Additionally, while the initial GDP headline was a contraction of 1.4%, the below data point concerning consumer spending rose 2.7% (annual rate) and was a slight acceleration from end of last year. The core personal consumption expenditure (PCE) price index increased 5.2% versus 5.3% consensus & the employment cost index increased 1.4% compared to 1.1% estimate. The PCE is sometimes referred as the Fed’s favorite inflation gauge. Overall treasury yields are higher and the futures are trading lower post announcements. Asian markets closed higher as China is expected to announce further stimulus plans to counteract the Covid lockdowns and ease its campaign against tech companies. European markets are trading higher.