Stock index futures were higher Friday with the major indexes looking at a winning week.
After strong economic data this week, the markets have the chance of a July quarter-point Fed hike at more than 85%.
Eyes are on the Fed’s favorite inflation gauge (the core PCE price index), which is out before the bell along with May personal income and spending. The forecast is for a monthly rise of 0.3%, with the annual rate staying at 4.7%.
Spending is expected to rise 0.2% for May, with income up 0.3%.
“The image of stronger-than-expected consumer spending with an artificially overstated inflation rate might encourage unnecessary additional policy tightening if policy makers ignore the details behind this pattern,” UBS’ Paul Donovan said. “US May personal income and spending data should continue the pattern.”
“This is accompanied by the personal expenditure deflator – an inflation measure that also overstates middle-income consumers’ inflation, but not as much as does consumer price inflation.”
Shortly after the start of trading, the Chicago PMI hits. Economists expect a rise to 44.
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