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Wall Street in a holding pattern ahead of key inflation report

BY THE NUMBERS

US stock futures were mixed as investors awaited Friday’s release before the bell of a key inflation report. The 10-year Treasury yield held above 3% on Friday ahead of consumer price data for May, due at 8:30 am ET. The surge in bond yields on Thursday hit stocks as the Dow fell 638 points or nearly 2%. The S&P 500 and the Nasdaq lost about 2.4% and 2.8%, respectively. (CNBC)

Economists surveyed by Dow Jones expect May’s consumer price index to show an 8.3% year-over-year increase, the same as April’s. Year-on-year inflation peaked at 8.5% in March. The Federal Reserve is expected to raise interest rates by half a point next week and another half point in July. But after that, the pace to combat four-decade high inflation is less clear. (CNBC)

The national average price for a gallon of gasoline, according to AAA, continues to rise, now just 1 cent under $5, as oil prices continue to rise. West Texas Intermediate crude, the US benchmark, rose on Friday, trading above $122 a barrel. (CNBC)

However, those gains were capped as traders worried that new lockdown measures in Shanghai for mass covid testing could outweigh robust oil and gas consumption for the world’s top consumer, the United States. But for the time being, the summer-driven spike in demand in the US was driving crude prices higher. (CNBC)

TODAY IN THE NEWS

Netflix (NFLX) fell 4.7% in premarket trading after Goldman Sachs downgraded the stock to sell from neutral and lowered the price target to $186 a share from $265. In the same report, Goldman also cut the sale of “neutral” video game company Roblox (RBLX), down 4.7% in premarket, and eBay (EBAY), down 3.6%. (CNBC Pro)

DocuSign (DOCU) sank 25% pre-market. The electronic signature software provider’s weaker-than-expected earnings for its fiscal first quarter overshadowed the pace of revenue. The company said it will not cut headcount, but will reduce the number of people it plans to hire. (CNBC)

Stitch Fix (SFIX) tumbled roughly 14% in pre-bell trading. The online custom style platform confirmed the planned layoffs of 15% of salaried positions within its workforce as it reported disappointing quarterly results and warned about the current quarter. (CNBC)

The House select committee investigating the Jan. 6 riots on Capitol Hill began presenting its initial findings Thursday night in the first of a series of public hearings. The panel said the assault was not spontaneous, calling it an “attempted coup” and a direct result of then-defeated President Donald Trump’s effort to nullify the 2020 election. (AP)

Trump, in a post on social media after the hearing, criticized the committee for not showing “the many positive witnesses and statements” and playing “only negative images.” More hearings are expected in the coming weeks. (CNBC)

ACTIONS TO SEE

Vail Resorts (MTN) rallied 6.7% in premarket trading after the resort operator posted better-than-expected quarterly results. Vail benefited from an easing of Covid-related restrictions and noted successful efforts to attract visitors outside of its peak ski season.

Rent The Runway (RENT) posted a smaller-than-expected quarterly loss, while its revenue beat Wall Street forecasts. Sales doubled from the previous year. The fashion rental company also issued an optimistic revenue forecast for the current quarter. The shares rose 8.2% before trading.

Gene-based therapy maker Illumina (ILMN) saw its shares fall 4.2% premarket after announcing the departure of CFO Sam Samad, who will take over as CFO at Quest Diagnostics (DGX).

Angi (ANGI) reported a 24% increase in May revenue, compared to a year earlier, even as service requests fell 7%. Separately, the home services company announced the departure of chief financial officer Jeff Pederson.

CME Group (CME) gained 2.3% premarket after Atlantic Equities upgraded the stock trader to overweight from neutral. The firm said that CME has the strongest fundamental backdrop among US-based exchanges and that a recent drop in equities provides an attractive entry point.

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