U.S. Stocks May Move To The Downside As Traders Digest Inflation Data

(RTTNews) - After ending the previous session little changed, stocks may move to the downside in early trading on Friday. The major index futures are currently pointing to a lower open for the markets, with the S&P 500 futures down by 0.5 percent.

Concerns about the outlook for interest rates may continue to weigh on Wall Street following the sell-off seen during trading on Wednesday.

The Fed signaled Wednesday that it expects to lower rates less than previously estimated next year amid signs progress toward reducing inflation has slowed.

However, the futures climbed well off their worst levels following the release of a Commerce Department report showing consumer prices in the U.S. crept up by slightly less than expected in November.

The Commerce Department said its personal consumption expenditures (PCE) price index inched up by 0.1 percent in November after rising by 0.2 percent in October. Economists had expected prices to increase by another 0.2 percent.

The annual rate of growth by the PCE price index accelerated to 2.4 percent in November from 2.3 percent in October, slightly slower than 2.5 percent jump economists had expected.

Excluding food and energy prices, the core PCE price index also edged up by 0.1 percent in November after climbing by 0.3 percent in October. Economists had expected core prices to rise by 0.2 percent.

The annual rate of growth by the core PCE price index in November came in at 2.8 percent, unchanged from October, while economists had expected an acceleration to 2.9 percent.

The inflation readings, which are preferred by the Federal Reserve, were included in a report on personal income and spending.

Not long after the start of trading, the University of Michigan is scheduled to release its revised reading on consumer sentiment in the month of December.

The consumer sentiment index for December is expected to be unrevised from the preliminary reading of 74.0, which was up from 71.8 in November.

Following the sell-off seen late in Wednesday's session, stocks showed a notable rebound in early trading on Thursday. Buying interest waned over the course of the trading day, however, and the major averages eventually ended the day roughly flat.

The Dow still managed to snap its ten-day losing streak, inching up 15.37 points or less than a tenth of a percent to 42,342.24, while the Nasdaq slipped 19.92 points or 0.1 percent to 19,372.77 and the S&P 500 edged down 5.08 points or 0.1 percent at 5,867.08.

In overseas trading, stock markets across the Asia-Pacific region moved mostly lower on Friday. China's Shanghai Composite Index edged down by 0.1 percent and Japan's Nikkei 225 Index dipped by 0.3 percent, while Australia's S&P/ASX 200 Index slumped by 1.2 percent.

The major European markets have also moved to the downside on the day. While the German DAX Index is down by 1.3 percent, the French CAC 40 Index is down by 1.1 percent and the U.K.'s FTSE 100 Index is down by 1.0 percent.

In commodities trading, crude oil futures are slipping $0.25 to $69.13 a barrel after sliding $0.64 to $69.38 a barrel on Thursday. Meanwhile, after plunging $45.20 to $2,608.10 an ounce in the previous session, gold futures are climbing $12.50 to $2,620.60 an ounce.

On the currency front, the U.S. dollar is trading at 156.46 yen versus the 157.44 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.0411 compared to yesterday's $1.0363.