U.S. stock futures are pointing lower after the S&P 500 and Dow Jones Industrial Average closed at record highs yesterday; inflation is expected to have ticked higher in today’s release of the July Personal Consumption Expenditures reading; Dell Technologies (DELL) shares are dropping after the personal computer maker’s current-quarter profit outlook missed expectations; Marvell Technology (MRVL) shares are diving on a weak revenue outlook; and YouTube TV, part of Alphabet’s (GOOGL) Google, has reached a deal with Fox to continue carrying the network’s programming just in time for football season. Here’s what investors need to know today.
1. US Stock Futures Point Lower Ahead of Inflation Data
U.S. stock futures are falling in premarket trading after the S&P 500 and Dow Jones Industrial Average closed at record highs ahead of today’s highly anticipated inflation report. S&P 500 and Dow futures are down 0.3%, while Nasdaq futures are up down by 0.5% after the tech-heavy index nearly hit a record high yesterday. Bitcoin (BTCUSD) is dropping to trade at around $110,000. The yield on the 10-year Treasury note is inching higher. Oil and gold futures are both moving lower.
2. Inflation Expected to Have Inched Higher in July
Inflation is expected to have remained at 2.6% year-over-year when the July Personal Consumption Expenditures data is released at 8:30 a.m. ET. “Core” inflation, which excludes volatile prices for food and energy, is expected to have risen 2.9%, up from June’s 2.8% reading, according to economists surveyed by The Wall Street Journal and Dow Jones Newswires. Officials at the Federal Reserve use PCE core inflation to judge whether inflation is running at the central bank’s target of a 2% annual rate. The report is the last one that Fed officials will see before Sept. 16-17, when the central bank’s policy committee will meet to decide whether to cut interest rates.
3. Dell Stock Drops on Computer Maker’s Soft Current-Quarter Profit Outlook
Dell Technologies (DELL) shares are down 6% in premarket trading after the computer maker’s current-quarter profit projection came in lower than expected. Dell sees third-quarter adjusted earnings per share (EPS) of $2.45 at the midpoint, below the $2.49 expected by analysts surveyed by Visible Alpha. The company’s Q2 results and projections for Q3 revenue and full-year profit and revenue came in above estimates. Dell shares entered Friday up 16% this year.
4. Marvell Technology Stock Sinks on Weak Sales Outlook
Marvell Technology (MRVL) shares are plunging 14% in premarket trading after the firm’s current-quarter revenue projection disappointed investors. The AI chipmaker reported second-quarter adjusted EPS of $0.67 on revenue that soared 58% year-over-year to $2.01 billion, both in line with Visible Alpha estimates. However, Marvell’s Q3 revenue projection with a midpoint of $2.06 billion was below the $2.10 billion consensus. Marvell shares entered Friday down 30% this year.
5. YouTube TV, Fox Strike Deal Ahead of Football Season
YouTube TV, which is part of Alphabet’s (GOOGL) Google, has reached a deal with Fox (FOXA) to continue to provide the network’s programming, just in time for football season. Financial terms were not disclosed. Fox broadcasts the National Football League and big college football matchups, including this week’s biggest game, Saturday’s clash between No. 1 Texas at No. 3 Ohio State at noon ET. Shares of Alphabet are about 1% lower in premarket trading, while Fox shares are little changed.
