Continuing the directionless trend from yesterday, stock futures are pointing to a flat or mixed open as oil prices moderate from hitting $72 per barrel this week, while the U.S. dollar is making broad-based gains.
In terms of economic releases, the week ends on a soft note with the the 8:30 release of Import Prices and the 10:00 report on Consumer Sentiment.
Imports are expected to show a 1.3% price increase in May, in large part because of rising oil prices, which could also have an adverse impact on consumer sentiment.
The Reuters/University of Michigan survey surged to 68.7 in May, and the upward trend is expected to continue to 70.0 in June. Such figures indicate that the economy remains in dire straits, but stock prices should boost sentiment.
Factors holding sentiment back including rising oil prices, a weaker dollar, and soaring mortgage rates.
Looking ahead, the Federal Reserve may decide not to continue purchasing more long-term Treasuries or mortgage-backed securities, according to the morning’s Wall Street Journal.
“Fed officials have become more confident recently that they have stabilized the economy and set the stage for recovery,” the newspaper reports. “But divisions are brewing within the Fed over whether it should do more to speed the healing, pause, or start pulling back to avoid an outbreak of inflation.”
Also in the headlines is BlackRock’s $13.5 billion purchase of Barclays Global Investors. The deal will make the UK bank the world’s largest asset manager.