US pre-open: Futures in the green ahead of PCE reading

Wall Street futures had stocks opening higher ahead of the bell on Friday as market participants awaited some key inflation data scheduled for release later in the day.

As of 1215 BST, Dow Jones futures were up 0.09%, while S&P 500 and Nasdaq-100 futures had the indices opening 0.28% and 0.48% firmer, respectively.

The Dow closed 516.91 points higher on Thursday as investors continued to digest minutes from the FOMC's latest meeting, a second GDP estimate, and a number of retail earnings.

With the Dow Jones on track to snap a seven-week long losing streak, Friday's primary focus will be April's PCE price index at 1330 BST, with the core index forecast to fall from 5.2% to 4.9%

CMC Markets' Michael Hewson said: "Yesterday in the latest quarterly Q1 GDP numbers the core PCE number fell back from 5.2% to 5.1%, and US policymakers will be looking for further signs that the current bout of inflation is starting to run out of steam and slip back.

"Today's US PCE core deflator could offer some clues about that, with the hope that we could see a decline to 4.9% from 5.2% in March. PCE core deflator is the Fed's preferred inflation targeting measure and a softer number here, could give further encouragement to the view that we might see [a] rate pause in September, after Atlanta Fed President Bostic floated the idea earlier this week. The PCE deflator is expected to fall to 6.2% from 6.6%."

Elsewhere on the macro front, an advance reading of last month's goods trade balance will also be released at 1330 BST, while May's University of Michigan consumer sentiment will follow at 1500 BST.

In the corporate space, Gap shares slumped after the retailer lowered its full-year profit guidance, while Ulta Beauty shares rallied in pre-market after revealing better-than-expected quarterly results.

No major corporate earnings were slated for release on Friday.

Reporting by Iain Gilbert at Sharecast.com