US stock futures little changed as investors eye fresh inflation data and more trade news
US stock futures little changed as investors eye fresh inflation data and more trade news
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What is 'TACO trade,' a new phrase angering President Trump?
'TACO trade' is a jab at President Donald Trump's propensity to impose or threaten tariffs and later back off.
U.S. stock futures are little changed as investors await fresh inflation data and any new trade news.
The Federal Reserve's preferred inflation gauge, the personal consumption expenditures index (PCE), personal income and spending data are due before the bell. Economists surveyed by Dow Jones expect PCE to rise 2.2% year over year. Core PCE, which strips out volatile food and energy prices, is expected to rise 2.6% for the year.
At 7:39 a.m. ET, futures linked to the blue-chip Dow fell 0.03%; while the broad S&P 500 lost 0.08% and tech-laden Nasdaq shed 0.06%.
After an appeals court let President Donald Trump's tariffs stand while the White House gets through the appeals process, investors are still waiting for the final say. Some say the case could end up decided by the Supreme Court.
Additionally, some analysts say the court fight over tariffs may spur Trump to re-escalate tariff talk.
"Given Trump's public ire against previous court rulings and the press questions on May 28 around the 'TACO' narrative emerging in the media (Trump Always Chickens Out), we would not be surprised to see a meaningful tariff escalation/response from the White House sooner rather than later," wrote Chris Krueger at TD Cowen in a note.
Trump is already looking at ways to implement tariffs while the case makes its way through the appeals process, the Wall Street Journal said. The administration is considering using a provision of the Trade Act of 1974 to implement tariffs of up to 15% for 150 days, it said.
Further uncertainty about tariffs came from Treasury Secretary Bessent, who said in a Fox News interview that U.S.-China trade talks 'are a bit stalled." Investors are hoping a real trade deal, not just a pause, would emerge with China after surprisingly productive talks in Switzerland earlier in the month.
Still, all three major indexes are on pace for gains for the week and the month.
Corporate news
Gap sees second-quarter revenues below Street forecasts.
Discount bulk retailer Costco's quarterly results topped expetations.
Dell's sales in the first three months topped analysts' forecasts and raised its full-year guidance.
Marvell Technology swung to a profit, fueled by strong demand for artificial intelligence.
American Eagle Outfitters swung to a loss in the first three months.
Zscakler reported higher third-quarter revenue and slightly increased its full-year sales guidance.
Ulta boosted its full-year outlook and posted higher-than-expected first-quarter sales.
Medora Lee is a money, markets, and personal finance reporter at USA TODAY. You can reach her at mjlee@usatoday.com and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday.
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