S&P and Nasdaq futures edge higher as investors await readings on CPI, consumer confidence.
May 16, 2003: 6:03 AM EDT
NEW YORK (CNN/Money) - Stocks will try to wrap up another winning week Friday but first investors must digest reports on inflation and consumer confidence that will be closely watched after the biggest drop in wholesale prices on record sparked fears of deflation.
Investor also will consider some stronger earnings, but weaker guidance from Dell Computer, released after the close Thursday.
S&P and Nasdaq futures edged higher in before-hours trading, pointing to a mixed to slightly higher start on Wall Street.
Stocks closed higher Thursday, with buyers resurfacing after two days of declines amid encouraging comments from IBM and other technology companies.
The Dow rose a bit less than 1 percent while the tech-heavy Nasdaq composite gained 1.1 percent. (For more on Thursday's markets, click here).
Overseas, stocks fell in Asia but started with modest gains in Europe.
Among stocks trading in Europe, Dell Computer (DELL: down $0.07 to $32.18, Research, Estimates) slipped 3.5 percent. The leading maker of personal computers reported an earnings increase of 31 percent and sales growth of 18 percent in its fiscal first quarter after the bell Thursday, meeting analysts' expectations. But, the company's sales guidance for the second quarter was below the Wall Street consensus estimate.
Treasury prices were little changed, leaving the yield on the 10-year note at about 3.53 percent. The dollar fell against the euro and edged lower versus the Japanese yen.
At home, economic news will take center stage Friday.
The government's report Thursday of a 1.9 percent drop in wholesale prices sparked worries of deflation -- when prices fall uncontrollably, hurting corporate profits and leading to an economic slowdown -- though some economists said the fears were overblown. (For more on the deflation debate, click here).
Investors and analysts will get more to chew on Friday with consumer price index for April, the government's main inflation gauge.
Economists are expecting a drop of 0.1 percent for the CPI and a 0.1 percent increase for the so-called core number, which excludes the volatile food and energy sectors, according to surveys by Briefing.com.
A preliminary reading for the University of Michigan consumer confidence index for May is also due. This measure of consumer confidence is expected to come in at 87, up from 86 in April.
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