Stock market today: Wall Street higher ahead of U.S. inflation report, Nike tumbles on grim outlook

abcnews.go.com:

Wall Street pointed toward a modestly higher open as markets looked ahead to a key report on inflation that could influence the Federal Reserve’s next move on interest rates

Wall Street pointed toward a modestly higher open Friday ahead of a key report on inflation that could influence the Federal Reserve's next decision on interest rates.

Futures for the Dow Jones Industrial Average gained 0.1% and futures for the S&P 500 rose nearly 0.4%.

Nike shares tumbled 15% after the shoe and athletic wear company missed Wall Street's revenue targets and cut its full-year sales guidance. Company executives said they expect sales to decline by single digits in the current fiscal year, citing a “challenging” environment.

Nike's dour outlook dragged other athletic apparel companies down with it. Foot Locker fell 5.7%, Skechers lost 3.7% and Under Armour was down 2.8% in off-hours trading.

The U.S. stock market has been listless this week in the lead up to Friday’s release of the next influential inflation report from the government. The personal consumption expenditures index, or PCE, is the Fed’s preferred measure of inflation.

Economists expect the report to show a modest easing of inflation to 2.6% in May, following a 2.7% reading in April. That’s down from the PCE’s peak of 7.1% in the middle of 2022. Other measures of inflation, including the consumer price index, have also eased significantly over the last two years.

The latest updates on inflation could influence the central bank’s decision on when to begin cutting interest rates, which remain at their highest level in more than 20 years and which are having an impact worldwide. Wall Street is betting that the central bank will start cutting interest rates at its September