Stock futures gain as S&P 500 heads for 4th straight week on hopes inflation will peak

The University of Michigan Consumer Survey for August will be released at 10 a.m., and investors will be watching the inflation component with particular interest.

Economists polled by Dow Jones expect the survey to come in at 52.5, a slight improvement from 51.1 in July and close to a historic low of 50 in June.

That June reading turned out to be particularly important not only for the top-line scale but also because it showed a rise in inflation expectations. Survey respondents set their one-year forecast at 5.3% but raised their five-year forecast 0.3 percentage point to 3.3% (later revised to 3.1%).

The combination of record low sentiment and rising inflation concerns prompted the Federal Reserve to signal an 11-hour shift from a 0.5 percentage point telegraph rate hike to a 0.75 percentage point move.

The July poll saw the 5-year forecast drop to 2.9%, but the Fed raised another three-quarters of a point anyway. Consumer surveys often correlate closely with gas prices, which have fallen sharply over the past month or so.

– Jeff Cox

Nearly two months after their June lows, the three major averages have made big strides but are still well below their record levels.

Here is where each position enters on Friday:

Dow is:

• 9.8% from a record high
• 11.5% from the lowest level in June

The S&P 500 Index is:

• 12.7% of his record height
• 14.7% from the lowest level in June

The Nasdaq Composite is:

• 21.17% of its record height
• 20.0% from the lowest level in June

– Jesse Pound

On Friday, the House of Representatives will vote on the Inflation Reduction Act, a sweeping piece of legislation that allocates hundreds of billions of dollars to energy and health care. It also includes some tax reform measures, including corporate taxes.

The bill, passed by the Senate on Sunday, sets $369 billion for energy security and combating climate change, making it the largest climate package in US history.

The package seeks to accelerate renewable energy development in the United States while also stimulating domestic supply chains.

The bill comes after months of discussions among lawmakers, after Senator Joe Manchin voted against the “Build Back Better” bill.

– Peppa Stevens

Apple shares were in the next green A report from Bloomberg News The iPhone maker still expects to produce the same number of smartphones this year as last year. It also requires suppliers to make the same amount of the latest generation of iPhones this year as in 2021, according to the report.

If true, it will counter concerns about the global economic slowdown affecting iPhone demand. Apple shares are down just 5% this year after rising 30% from their June low. Shares were last up 0.2% in pre-market trading.

-John Meloy

European markets It was slightly higher on Friday, as investors charted the course for monetary policy and economic growth.

pan europe Stokes 600 It rose 0.4% in early trade, with travel and leisure stocks gaining 2.7% as most major sectors and exchanges traded in positive territory. Technology stocks fell 0.4%.

European stock indexes closed Thursday in mixed territory, with European equities guided throughout the week mostly by key data points from the United States and a deluge of corporate earnings reports.

Investors in Europe are digesting a slew of economic data on Friday, including the preliminary UK Q2 GDP reading, July inflation data from France, Spain and Italy, and eurozone industrial production for June.

– Elliot Smith

Tech stocks have seen something of a recovery lately, even if the tech-heavy Nasdaq fell slightly on Thursday.

The Nasdaq is up about 20% from its June low, while Apple and Netflix have jumped about 30% and 50%, respectively, from their lows in the same month.

Senior investor Paul Mix revealed his call for FAANG shares on CNBC Pro Talks — one, to buy the dip if it drops a bit more, plus one to hold off. CNBC Pro subscribers can read more here.

– Weezin Tan

All major averages are on their way to close the week higher with Thursday’s close.

Thursday’s Dow Jones finished 1.63% higher for the week, while the S&P 500 and Nasdaq Composite were up 1.5% and 0.97%, respectively.

For the S&P 500, it will be its first 4-week winning streak since November 2021.

All S&P 500 sectors also remained in positive territory, led by the energy sector, which rose more than 6%. Both financials and materials have gained more than 3% since the start of the week.

– Samantha Sobin

Stock futures opened slightly higher on Thursday. Dow Jones-related futures rose 0.13%, or 43 points, while S&P 500 and Nasdaq 100 futures gained 0.14% each.

– Samantha Sobin

Shares of Illumina and Olo crashed hours after the two companies shared disappointing guidance.

Illumina stock fell more than 18% after the healthcare company missed estimates on top and bottom earnings and cut its full-year forecast. Shares of Olo are down 27% as the restaurant technology company shares poor guidance for the full year and the current quarter.

– Samantha Sobin

The electric-car maker’s inventory fell nearly 3% despite beating revenue estimates last quarter.

Rivian posted a lower-than-expected loss and reiterated its full-year delivery guidance but lowered its forecast for this year, noting that investors should prepare for greater loss and lower capital expenditures going forward.

Rivian shares oscillated between slight gains and losses in after-hours trading as investors digested the report.

– Samantha Sobin