Stock futures rise as inflation drops below 5% level: Stock market news todayMay 10th, 2023
U.S. stock futures rose ahead of the open on Wednesday as investors digest key data that shows inflation dropped below 5% level since spring of 2021.
Futures on the S&P 500 (^GSPC) edged up 0.28%, while the Dow Jones Industrial Average (^DJI) added 0.15%. The technology-heavy Nasdaq Composite (^IXIC) gained 0.45% at 8:44 am ET.
The highlight for Wall Street was economic data that showed headline inflation increased to 4.9%, lower that forecasted 5%. April’s “core” consumer price index, which strips out the more volatile costs of food and gas prices, rose 5.5% over the last year, in-line with economists expectations.
Analysts at JPMorgan expect the market to refocus on “recent Fedspeak which remains hawkish despite the Fed’s data dependent approach.” On Wednesday, New York Fed President John Williams noted that inflation remains “too high.”
Also on Tuesday, President Joe Biden met with House Speaker Kevin McCarthy and other top congressional leaders for a high-stakes talk on the nation’s debt limit. The conversation yielded little apparent progress, but both sides are scheduled to meet again on Friday.
Government bonds were lower. The yield on the 10-year yield traded down to 3.44%, compared to the two-year note yields fell to 3.93%. The dollar index ticked up, while gold prices fell.
In single-stock moves, shares of Airbnb (ABNB) sank over 13% after the booking platform recorded its best quarter yet but the company forecasted lower revenues in the next quarter amid a plan to make the platform feel affordable again.
Twilio Inc. (TWLO) shares tumbled more than 16% following the software company issuing a forecast for sales of $980 million to $990 million in its fiscal second quarter, below analysts’ forecasts of $1.05 billion.
Shares of Rivian Automotive, Inc. (RIVN) rose after the EV maker reported a quarterly loss that was narrow for a year ago, while maintaining its production outlook of 50,000 vehicles for the year.
A Warren Buffett favorite, Occidental Petroleum, (OXY) said first-quarter earnings slipped from a year ago and adjusted profit missed analysts’ expectations as oil and gas sales declined due to reduced energy prices. The stock was down nearly 2%.
Upstart Holdings, Inc. (UPST) rallied over 35% Wednesday morning after the artificial intelligence lending platform announced an upbeat revenue outlook for its fiscal second quarter.
Dani Romero is a reporter for Yahoo Finance. Follow her on Twitter @daniromerotv
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