U.S. stock futures are pointing slightly higher as the S&P 500 and Nasdaq approach record highs and investors review the trade agreement between the U.S. and China; May inflation is expected to have risen in today's release of the PCE figures; Nike (NKE) shares are soaring in premarket trading after its quarterly results topped analysts' estimates; and a top aide to Tesla (TSLA) CEO Elon Musk reportedly has left the company. Here's what investors need to know today.
1. US Stock Futures Point Higher to End Week
U.S. stock futures are edging higher as investors digest details of a trade agreement with China and look ahead to inflation data set for release this morning. S&P 500 and Nasdaq futures are up 0.3% after the indexes closed a tick shy of record highs yesterday. Dow Jones Industrial Average futures also are slightly higher. Bitcoin (BTCUSD) is down slightly to trade at around $107,000. The yield on the 10-year Treasury note and oil futures are slightly higher. Gold futures are declining to around $3,300 an ounce.
2. US, China Agree on Trade Framework, Officials Say
The U.S. and China have further confirmed the details of the trade framework reached by both sides earlier this month in London, raising the prospect of lower tariffs soon and a resumption in U.S. access to Chinese rare-earth minerals. U.S. Commerce Secretary Howard Lutnick said in an interview with Bloomberg that the two countries had finalized an agreement. “They're going to deliver rare earths to us,” Lutnick said, adding that once China does that, “we'll take down our countermeasures.” A China Ministry of Commerce spokesperson also confirmed that an agreement was reached.
3. PCE Inflation Data Due This Morning
Consumer prices are expected to have risen in May when inflation data is released at 8:30 a.m. ET today. The Personal Consumption Expenditure (PCE) inflation report is projected to show a 2.3% year-over-year increase in prices, up from a 2.1% annual increase in April, according to a survey of economists by Dow Jones Newswires and The Wall Street Journal. “Core” PCE inflation, which excludes volatile food and energy prices, is expected to have increased to an annual rate of 2.6% from 2.5% in April. The Federal Reserve uses the PCE data as its benchmark for determining whether prices are rising at its target rate of 2% a year.
4. Nike Stock Jumps on Better-Than-Expected Earnings Report
Nike (NKE) shares are soaring 10% in premarket trading after its quarterly report came in better than analysts expected amid a turnaround effort by its CEO. The sportswear giant's revenue and profit fell year-over-year but topped the analyst consensus compiled by Visible Alpha. The company also said it expects to take a $1 billion hit from tariffs, but that it also expected to mitigate those costs over time. Nike shares enter Friday down 17% this year.
5. Musk Aide Afshar Reportedly Out at Tesla
A top aide to Tesla (TSLA) CEO Elon Musk reportedly has left the company. Omead Afshar, who led Tesla’s sales and manufacturing operations in North America and Europe, has departed the electric vehicle maker after being promoted less than a year ago, according to reports in Bloomberg and The Wall Street Journal. The reported departure comes as Tesla's European sales plummeted for a fifth straight month in May. Tesla shares, which moved higher earlier this week with the rollout of its robotaxi service in Texas, are ticking lower in premarket trading.
