HomeTrading NewsStock market news live updates: Stocks open lower after surprise inflation data

Stock market news live updates: Stocks open lower after surprise inflation data

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Stocks were mixed early in Friday’s trading session lower after surprising inflation data hampered investors’ efforts to maintain momentum after the S&P 500 snapped a five-day losing streak on Thursday.

Near 10:00 a.m. ET, the S&P 500 and Nasdaq were unchanged, while the Dow was off 0.1%

Shortly after the opening bell on Wall Street, all three averages opened lower by about 0.3% following the November read on producer prices.

Data on producer prices out Friday morning sent futures tumbling, with this hotter-than-expected inflation data coming ahead of next week’s Federal Reserve meeting. Earlier Friday morning, stock futures had been pointing to gains at the open.

The November read on producer prices showed prices rising 0.3% over the prior month on a headline basis and 0.4% on a “core” basis, which excludes food and energy. Economists had expected increases of 0.2% for each reading, respectively. Compared to the prior year, producer prices rose 7.4%.

After the October read on consumer prices showed some inflation pressures easing, Friday’s data suggests wholesale prices remain on the rise and suggest inflation may remain firmer in the coming months than investors had previously believed. The next read on consumer prices is due out Tuesday morning.

Still, economists don’t see this data changing the outlook for the Fed next week.

“While headline PPI advanced faster than expected in November, monthly increases are down sharply from a year ago, allowing annual inflation to cool for the fifth consecutive month. The reading is unlikely to figure significantly into the Fed’s decision next week, when we expect a 50bps rate hike,” said Matthew Martin, U.S. economist at Oxford Economics.

Elsewhere on the economic data calendar, investors were greeted by a stronger-than-expected gauge on consumer sentiment, with the University of Michigan’s first look at sentiment in December coming at 59.1, better than the 56.8 expected and 57 reported at the end of last month.

“Gains in the sentiment index were seen across multiple demographic groups, with particularly large increases for higher-income families and those with larger stock holdings, supported by recent rises in financial markets,” said Joanne Hsu, director for the survey of consumers.

Oil prices also continue to be a focus for investors, with the price of gasoline in the U.S. hitting a new low for the year on Thursday as crude oil reverses its modest rally late last week. Near 9:30 a.m. ET, WTI crude oil was trading near $71.80 per barrel

The dollar, seen as the key to the market’s rally during the fall, was broadly weaker against most currency pairs early Friday.

Stocks making big moves ahead of Friday’s open include lululemon (LULU), with shares of the athletic apparel retailer down as much as 7% after the company offered guidance for the current quarter that came in below estimates. Still, the company said full-year sales would be ahead of its prior forecast.

A Lululemon sign is seen at a shopping mall in San Diego, California, U.S., November, 23, 2022. REUTERS/Mike Blake

Shares of Docusign (DOCU) were up over 7% early Friday after the company reported late Thursday results that were better than expected.

DocuSign was one of the biggest winners during the pandemic-induced market rally; shares were down more than 70% so far this year before Thursday’s quarterly results.

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