4:05pm: Monthly gains secured
US stocks ended August on the front foot, with each of the three major indexes ending the month higher.
The Nasdaq added 1.1% at 17,713 points, the S&P 500 was up 1% at 5,648 points, and the Dow Jones added 0.6% at 41,563 points.
2:55pm: Oil slides
Oil prices continued their slump on Friday afternoon amid reports OPEC is likely to proceed with plans to up output starting in October.
WTI Crude was down more than 3% at about $73.50 per barrel.
“Another see-saw week for oil prices is ending with the commodity firmly on the back foot,” IG chief market analyst Chris Beauchamp commented.
“Hopes of a sustained rebound on stronger demand seem to have been definitively dashed as OPEC pledges to boost production from October. This is good news for consumers, but the oil majors will fear a hit to margins in coming quarters.”
1:40pm: Mixed retail earnings
This quarter's retail earnings have painted a mixed picture of the American consumer.
Shares of cosmetics retailer Ulta Beauty Inc (NASDAQ:ULTA) shed almost 5% on Friday afternoon after it lowered its full-year sales and profit guidance on the back of a disappointing quarter.
Comparable sales were down 1.2% year-over-year driven by a 1.8% decrease in transactions and a 0.6% increase in the average ticket.
Discount retailer Dollar General Corp (NYSE:DG) and footwear brand Birkenstock Holding PLC (NYSE:BIRK) this earnings season have also warned of increasing selective consumers.
On the other hand, Best Buy Co Inc (NYSE:BBY)'s latest report sparked optimism as the tech retailer raised its full-year profit guidance.
12:02pm: August set to end on a high
US stocks were steady at midday as key inflation data continued to confirm interest rate cuts are imminent.
The Nasdaq added 0.3%, the S&P 500 was up 0.2% while the Dow inched 0.1% lower.
"The final trading day of August is seeing more gains for stocks, which have staged an impressive rebound from the disorderly rout four weeks ago," IG chief market analyst Chris Beauchamp commented.
“August is finishing in a very different form to how it began. While the Nikkei 225 is still down for the month by 1.2%, itself a significant achievement, the FTSE 100, Dax, Dow and others are all in positive territory for the month.
“The summer squall of early August has been forgotten, and with US economic data still looking strong, and rate cuts on the way, investors remain confident about the near-term outlook.”
9:47pm: Nasdaq, stocks jump at open
Wall Street enjoyed a positive start to the day on Friday following a slightly lower-than-expected personal consumption expenditures (PCE) index reading.
The Nasdaq jumped 0.9% on Friday’s open, while the S&P 500 and Dow Jones gained 0.6% and 0.4% respectively.
Bureau of Economic Analysis data showed the PCE index climbed by 2.5% over the year to last month and in line with growth seen in June.
The core reading, which excludes food and energy, came in just below expectations at 2.6% and again at the same level as June.
Close Brothers Asset Management analyst Isabel Albarran noted the figures were “yet another” confirmation that base rate cuts were to come.
“With inflation cooling, the Fed’s attention is now firmly on the US labour market side of their dual mandate,” she said.
“If we do see further cooling, it’s highly likely that the Fed will deliver persistent rate cuts through 2025.”
7:35am: Wall Street seen higher
Wall Street looked set for a boost on Friday morning as attention turned to core personal consumption expenditures (PCE) data and speculation over next month’s base rate call.
Futures had the Nasdaq up 0.8% ahead of the opening bell, while the Dow Jones and S&P 500 were seen 0.2% and 0.4% higher respectively.
Friday’s PCE figures are set to dominate proceedings throughout the day, with the data representing the Federal Reserve’s preferred measure of inflation.
This is as investors await in anticipation of an expected cut to base interest in September, which many believe will be by 25 basis points following an upward revision to second-quarter GDP figures on Thursday.
That said, “any additional disinflation that might come today would help further the case for a 50-basis point cut in September,” Scope Markets analyst Joshua Mahony commented.
“Nonetheless, the trajectory for US inflation looks likely to remain somewhat flat for the rest of 2024, with the Fed having to cut rates despite above-target price growth.”
Expectations are for core PCE to have sat at 2.7% in July, following a 2.6% uptick in June.