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On Monday, U.S. stock index futures moved higher ahead of a crucial inflation report later this week that will be scrutinised to see if the Federal Reserve’s attempts to lower prices were working, while regional bank shares extended gains.
PacWest Bancorp jumped 33% premarket after the business issued a quarterly dividend, extending gains from a Friday comeback. Western Alliance Bancorp, Comerica Inc, and Zions Bancorp all climbed 3.5% to 8.6%.
Shares of such banks fell for much of last week due to concerns about the failure of First Republic Bank.
After strong earnings from Apple Inc. and U.S. jobs data reflecting a healthy labour market, U.S. stock indices launched a late-week surge on Friday, with the Dow Jones Industrial Average registering its highest one-day percentage increase since Jan. 6.
Dow e-minis were up 67 points, or 0.2%, S&P 500 e-minis were up 6 points, or 0.14%, and Nasdaq 100 e-minis were down 4.25 points, or 0.03% at 6:37 a.m. ET.
On Wednesday, the Labour Department will release inflation statistics, which is expected to indicate that the consumer price index (CPI) rose 0.4% in April after rising 0.1% in March. While excluding the volatile food and energy components, the CPI likely increased 0.4% last month.
Data on producer prices, weekly jobless claims and on consumer sentiment are all lined up through the week.
These data points will help investors not only gauge whether the Fed’s aggressive tightening cycle – including its most recent 25 basis point hike last week – is working towards tamping down inflation but also if fears of stagflation are founded.
American Airlines Group Inc rose 3.0% after J.P. Morgan raised its rating on the company’s stock to “overweight” from “neutral”, while Southwest Airlines Co fell 1.1% as JPM downgraded its stock to “neutral” from “overweight”.
On earnings, Warren Buffett’s Berkshire Hathaway Inc’s Class B shares rose 1.5% after the company posting a $35.5 billion first-quarter profit, reflecting gains from stocks such as Apple.
