Opening Comment — Friday, June 26, 2026
DJIA: 51,920.62, up 71.72
S&P 500: 7,357.49, down 0.73
NASDAQ: 25,358.60, down 118.03
Stocks lower to end out week
Stock futures are lower Friday morning following continued volatility in technology companies and ahead of today’s economic releases, including May’s advance goods trade balance and preliminary wholesale inventories, along with the finalized June reading of consumer sentiment from the University of Michigan. Investors are turning their attention to next week’s economic data, including June’s Institute for Supply Management manufacturing purchasing managers’ index and jobs report, due on Wednesday and Thursday, respectively. As of 7:15 AM ET, the Dow is decreasing 0.1%, while the S&P 500 is down 0.5%. The Nasdaq 100 is falling 1.1% relative to fair value on the GLOBEX.
U.S. equities were mixed on Thursday as personal income and spending each climbed 0.7% month-over-month (MOM) in May, coming in above expectations. The core Personal Consumption Expenditures (PCE) Deflator, the Federal Reserve’s (Fed’s) preferred gauge of inflation, rose 0.3% MOM and 3.4% year-over-year (YOY) in May, both in line with expectations, while the headline PCE deflator increased 0.4% MOM and 4.1% YOY. Meanwhile, the third reading of first-quarter gross domestic product growth was revised higher to a 2.1% annualized pace, while consumer spending came in weaker than previously estimated at a 0.5% annualized pace. The Dow was up 0.1%, while the tech-heavy Nasdaq Composite fell 0.5%. The S&P 500 was little changed with six of 11 sectors finishing in positive territory. The Industrials sector was the top performer, rising 2.2%, while the Consumer Discretionary sector was the bottom performer, falling 1.8%.
Technical Analysis:
None at this time.
On the data front, the advance goods trade balance for May is projected to show a deficit of $85.0 billion, higher than the prior month’s revised deficit of $83.0 billion. The preliminary May reading of wholesale inventories is expected to show an increase of 0.4% MOM compared to the prior month’s increase of 0.6%, while retail inventories are forecasted to have increased by 0.5% MOM in May, versus the prior month’s increase of 0.7%. The finalized June reading of consumer sentiment from the University of Michigan is expected to come in at 50.0 versus the initial reading of 48.9, while one-year and 5-10-year inflation expectations are projected to come in at 4.6% and 3.3%, compared to the preliminary readings of 4.6% and 3.4%, respectively. The Kansas City Fed will release their Services Survey for June, with the composite index expected to come in at 8, down from the prior month’s 10.
Across the pond, European stocks are lower in mid-day trading as the European Central Bank’s May Consumer Expectations Survey showed one-year inflation expectations easing more than expected to 3.5%, while three-year expectations remained steady at 2.9%.
Overnight in Asia, stocks were mostly lower as the Tokyo Consumer Price Index for June accelerated to 1.7% YOY on a headline basis and 1.9% on a core basis, with both readings exceeding expectations.
In FOREX trading, the U.S. dollar is lower as market expectations for Fed rate hikes continued easing following yesterday’s inflation update.
Over in the commodity pits, West Texas Intermediate (WTI) crude oil is 3.5% lower at $69.44/barrel as markets evaluate the latest geopolitical developments.
In the metals complex, gold is 0.7% higher at $4,052.97/ounce following a weakening U.S. dollar.