Investing.com -- U.S. stock futures traded higher Friday, boosted by better-than-expected results from Intel (NASDAQ: INTC ) ahead of the release of widely-watched inflation data.
The benchmark Wall Street indices closed lower Thursday, with the blue chip Dow Jones Industrial Average ending a 13-day winning streak after dropping over 200 points, or 0.7%, after data showed the U.S. economy grew 2.4% last quarter, stronger than expected and above the first quarter level.
Fed’s favored inflation gauge due
The Federal Reserve raised interest rates another quarter of a percentage point on Wednesday, and while hopes are increasing that this could be the last move of the central bank’s year-long tightening cycle, healthy growth could provide the policymakers with headroom to lift interest rates once more.
Fed chair Jerome Powell wouldn't rule out raising them again this year to tame inflation, at Wednesday’s press conference, and so investors will pay close attention to the personal consumption expenditure index , due for release later in the session, as it will provide another reading on inflation trends.
The index, the Fed’s favorite gauge of inflation, is expected to rise 3.1% for the year and fall 0.1% for the month, while the core figure , which excludes volatile food and energy prices, is expected to rise 4.2% for the year and 0.2% for the month.
Solid Intel results boost sentiment
Sentiment has been given a boost Friday after Intel reported after the close Thursday that the expected decline in sales of its key personal computer chips in the second quarter was not as steep as the markets had anticipated.
Sales of its key PC chips dropped by 12% to $6.8 billion, although this still topped expectations for a fall of 21%, suggesting that a nascent recovery in demand for the general-purpose processors made by Intel could be underway.
Intel’s stock soared 7% premarket.
Crude retreats but still set for positive week
Oil prices slipped lower Friday, but are still on course for another positive week after the release of data showing that the U.S. economy grew more than expected in the second quarter, driving down fears of a recession that could potentially dent oil demand this year.
The data also came amid increasing signs of tightness in the oil market, as the effects of production cuts by Saudi Arabia and Russia began to be felt.
Both contracts were set to add between 2.5% and 3.5% this week, their fifth straight positive week, having climbed to three-month highs during the previous session.
(Oliver Gray contributed to this article.)
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