S&P, Dow futures hover near flatline ahead of fresh US economic data

Investing.com -- US stock futures were broadly muted on Friday as investors awaited the release of a raft of economic data, including new consumer spending figures and the Federal Reserve's preferred gauge of inflation.

By 06:31 ET (10:31 GMT), the Dow futures contract was mostly unchanged, S&P 500 futures had shed 5 points or 0.1%, and Nasdaq 100 futures had edged down by 43 points or 0.2%.

The benchmark S&P 500 posted its third record close this week on Thursday, adding 23 points or 0.4%.

Underpinning the increase were figures showing that weekly jobless claims dropped by more than expected, while a final reading of US gross domestic product confirmed that the world's largest economy expanded by 3% in the second quarter.

The numbers helped to boost hopes that the economy and labor market were on solid footing as the Fed signals its intent to move ahead with a policy easing cycle following an outsized interest rate cut last week.

Consumer spending, PCE data ahead

Investors will likely be keeping close tabs on fresh personal spending and inflation data, which could provide a glimpse into the health of the US economy as the Fed approaches more expected rate reductions later this year.

Personal spending, which accounts for more than two-thirds of economic activity, is tipped to have grown by 0.3% in August, slowing from 0.5% in the prior month.

Meanwhile, economists expect the personal consumption expenditures (PCE) price index, which is used by Fed officials as a tracker of inflation, to rise by 0.2% on a monthly basis in August, matching July's pace. Year-on-year, the reading is seen cooling to 2.3% from 2.5%.

When stripping out volatile items like food and fuel, the PCE price index is projected to remain in line with July's month-on-month rate of 0.2% and speed up slightly to 2.7% from 2.6% on an annualized basis.

European stocks rally to record high

European stock markets touched a fresh record high in mid-morning dealmaking on Friday, fueled by momentum from a China-led rally in Asia.

Reports that China was mulling new stimulus measures -- on top of a slew of recent support policies aimed at stabilizing the ailing economy -- powered stocks in the country to their best week since 2008.

Luxury stocks in Europe, which derive much of their revenues from sales in China, were also bolstered. Shares in high-end fashion groups like LVMH, Kering (EPA:PRTP ), Hermes, Hugo Boss, and Burberry all advanced, while automobile stocks gained as well.

Oil choppy

Oil prices edged up on Friday, as traders assessed the stimulus measures out of China and the prospect of increased output from Libya and the OPEC+ oil group.

As of 06:47 ET, Brent crude futures had added 0.3% to $71.30 per barrel, while US West Texas Intermediate crude futures had risen by 0.4% to $67.94 a barrel.

In Libya, competing factions staking claims to control the country's central bank agreed on Thursday to end the dispute, which had crimped domestic oil production and exports. Analysts cited by Reuters suggested that over 500,000 barrels per day (bpd) of Libyan supply could return to markets.

Elsewhere, the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, are planning to reverse 180,000 bpd of deep ongoing output cuts in December.

Investors are weighing the outlook for a possible uptick in supply with a massive stimulus package out of China earlier this week. Analysts have flagged that it remains uncertain if the measures will boost activity in the world's top oil importer.

Source: Investing.com