Last Updated: 4:07 PM EST
Stock indices finished today’s trading session in the green. The Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) gained 1.65%, 1.02%, and 0.4%, respectively. As investors continued to cheer Microsoft (MSFT) and Alphabet’s (GOOGL) earnings results, Core PCE, which is the Fed’s preferred inflation metric, came in at 2.8% year-over-year and 0.3% month-over-month. Although the monthly figure was in line with expectations, the yearly print came in higher than the 2.6% that was expected. Even worse, regular PCE accelerated from the 2.5% seen last month to 2.7%.
Furthermore, the University of Michigan released its results on consumer inflation expectations over the next five years. Consumers now expect inflation to be 3%, which increased compared to the previous month’s 2.8%.
Taking a look at consumer sentiment, results came in at 77.2, which was lower than the expected 77.8. This is also a decrease compared to last month’s reading of 79.4. In addition, consumer expectations missed estimates, as April saw a print of 76 versus the forecast of 77. This also fell when compared to last month’s result of 77.4.
First Published: 2:45 AM EST
U.S. futures edged higher on Friday morning as stellar earnings from leading tech giants, including Microsoft (MSFT) and Alphabet (GOOGL), bolstered traders’ confidence. The futures on the Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) were up by about 1.1%, 0.89%, and 0.21%, respectively, at 2.13 a.m. EST, April 26.
In after-hours action, GOOGL stock jumped over 11.5% after the company delivered better-than-expected Q1 financial results and announced its first-ever cash dividend of $0.20 per share. Simultaneously, Microsoft stock is up over 4% in after-hours. MSFT surpassed analysts’ sales and EPS estimates, reflecting ongoing strength in its Cloud business.
On the earnings front, energy giant Exxon (XOM) will release its Q1 earnings. Wall Street expects XOM’s sales and EPS to decline year-over-year. Meanwhile, pharmaceutical company AbbVie (ABBV) will announce its first-quarter financials today.
Turning to this week’s economic reports, March’s core personal consumption expenditures data is due for release today. In addition, March’s Michigan consumer sentiment index data and the University of Michigan’s (UoM) 5-year consumer inflation expectations report will also be released today.
Concurrently, the U.S. 10-year treasury yield was roughly flat at the time of writing, floating near 4.7%. At the same time, WTI crude oil futures trended higher, hovering near $84.01 per barrel as of the last check.
Elsewhere, European markets are likely to open higher, rebounding from yesterday’s decline. Traders will be keeping an eye on corporate earnings releases.
Asia-Pacific Markets Remained Higher Today
Asia-Pacific indices remained higher on Friday, with the Bank of Japan leaving its benchmark interest rate unchanged. In addition, investors assessed Japan’s headline inflation rate for April, which slowed compared to March.
Japan’s Nikkei and Topix indices increased 0.84% and 0.72%, respectively. Further, China’s Shanghai Composite and Shenzhen Component indices rose by 0.97% and 1.74%, respectively. At the same time, Hong Kong’s Hang Seng index was up 2.54%.
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