Key economic data

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U.S. equity futures were mixed on Friday morning as investors awaited the latest data on personal consumption expenditures, the Federal Reserve’s favored inflation gauge.

Futures tied to the Dow Jones Industrial Average

 inched lower by 11 points, or 0.03%. S&P 500 futures

 ticked higher by 0.07%, and Nasdaq 100 futures

 were rose 0.2%.

In Thursday’s regular trading, the Dow

 jumped nearly 270 points, or 0.8%, with help from major bank names. The S&P 500

 added close to 0.5%, and the Nasdaq Composite

 ended the day flat.

Friday is a pivotal day for investors, marking not just the end of the June, but also the conclusion of the second quarter and the first half. Here is where the indexes stand as of Thursday’s close.

For June: The S&P 500 has gained 5.18% and is on pace for its best monthly performance since January. The Nasdaq has advanced 5.07%, and both it and the broad-market index are heading for a fourth consecutive positive month. The Dow has climbed 3.69%, and it’s on track for its best month since November.

For the second quarter: The S&P 500 has risen 6.99% and is tracking for a third straight quarter of gains. The Nasdaq touts a gain of 11.2% for back-to-back positive quarters. The Dow has jumped 2.55%, but it’s also on pace for a third winning quarter.

For year to date and the first half: The S&P 500 has popped 14.51%, and it’s heading for its best first half since 2018. The Nasdaq has surged nearly 30%, tracking for its best first half since 1983. The 30-stock Dow has a more modest gain of 2.94%.

The three major averages are also on pace for winning weeks, with the S&P 500 and Dow up more than 1% each, and the Nasdaq tracking for a 0.7% increase.


Key economic data

Stephanie Lang, chief investment officer at Homrich Berg, said there’s a push and pull between a soft- landing scenario that’s driven by strong economic data and the Fed, which is positioning for a tougher tone going forward.

“Even though the economic data has been strong… the Fed has continued to surprise on the upside in terms of how far they could go with their tightening,” she said. “They’ve made it clear that inflation remains their top priority, and they can do that because the job market has remained so strong, but you know, their ultimate goal is to tighten enough that you see some economic weakness so there’s less inflationary pressure.”

“We think that the Fed will continue on this rate hike,” Lang added, noting that her expectation is for two more increases. “It really depends on how tight the labor market continues to be and how sticky inflation is going forward.”

Investors’ attention is on May PCE data, due out at 8:30 a.m. ET on Friday. The core personal consumption expenditures price index is expected to show a 0.3% increase, according to economists polled by Dow Jones. It rose 0.4% in April. On an annual basis, the gauge is expected to have increased 4.7% — the same rate at which it grew in the prior month.

1 HOUR AGO

European equity markets open slightly higher

European equity markets opened in slightly positive territory Friday, after making marginal gains throughout the week, with investors keeping an eye on upcoming euro zone inflation data.



The pan-European Stoxx 600

 index was up 0.3% as trading started, with most sectors tentatively in positive territory. Mining stocks and oil and gas led gains, each with a 0.8% uptick, while tech stocks dropped 0.7%.

5 HOURS AGO

Asia-Pacific banks have strong capital buffers, S&P Global says

Large Asia-Pacific banks with $300 billion in assets or more hold strong capital buffers amid a slowing global economy, S&P Global Market Intelligence said.


China Merchants Bank

, Oversea-Chinese Banking Corp

., DBS Group Holdings

, HSBC

 and KB Financial Group were among the banks with common equity tier 1 ratios above regulatory requirement levels for the past three fiscal years.


The CET1 ratio compares a bank’s capital against its assets, covering liquid bank holdings such as cash and stock.


The Basel III accord stipulates the minimum total capital ratio that a bank must maintain is 8% of its risk-weighted assets, with a minimum tier 1 capital ratio of 6%. It is set by the Basel Committee on Banking Supervision, a consortium of central banks from 28 countries.

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