Outlook 06/28: Stock futures tick higher Friday as traders digested fresh personal consumption expenditures price index data that indicated slowing inflation. They are also counting down to the end of what has been a strong first half of the year. Inflation in May slowed to its lowest annual rate in more than three years. Core PCE, which excludes the more volatile food and energy prices, rose just 0.1% last month and 2.6% from the prior year. Both estimates were in line with the consensus. The core PCE index is the Federal Reserve’s preferred inflation measure. Headline PCE, which includes food and energy, was flat on the month and also up 2.6% on an annual basis, also in line with expectations. Inflation stats have been considered paramount by markets participants as they try to guess when the Fed will begin cutting interest rates. Traders are currently pricing in a 60% chance the central bank will lower rates at its September meeting.
/ESU24 (SEP 2024): YVAH 5547 YPOC 5541 YVAL 5532 GAP 5549.25
/ES Plan: Yesterday market closed bullish, but overnight, after PCE data, looks balanced, moving above previous value, so these're the opening and initial balance options for today:
