US open: Stocks higher following August PCE reading

(Sharecast News) - Major indices were in the green early on Friday as market participants digested August's consumer price expenditures report. As of 1455 BST, the Dow Jones Industrial Average was up 0.75% at 46,290.34, while the S&P 500 advanced 0.52% to 6,639.16, and the Nasdaq Composite came out of the gate 0.29% firmer at 22,448.98.

The Dow opened 343.02 points higher on Friday, more than reversing losses recorded in the previous session after a barrage of better-than-expected data drove a third straight losing session, with signs of a resilient economy clouding the outlook for monetary policy.

Traders were thumbing over the Federal Reserve's preferred inflation gauge early on Friday, which saw price pressures come in broadly in line with forecasts in August. The headline personal consumption expenditures price index rose 0.3% on the month and 2.7% year-on-year, matching consensus expectations. Core PCE prices were up 0.2% month-on-month and 2.9% annually, also in line with forecasts.

Personal incomes and spending, on the other hand, rose by more than expected last month, according to the Department of Labor. In seasonally adjusted terms, personal incomes increased by 0.4% month-on-month in August, while spending rose by 0.6%. Economists had been expecting more modest gains of 0.3% and 0.5%, respectively. July's monthly increase in core PCE was revised down by 10 basis points to 0.2%, while the personal savings rate slipped from 4.8% to 4.6%.

Equities also faced fresh pressure from trade policy headlines, after Donald Trump said the US would impose a 100% tariff on "any branded or patented pharmaceutical product", unless the manufacturer builds production facilities domestically. He also announced a 25% levy on imported heavy trucks effective 1 October.

Elsewhere on the macro front, the University of Michigan's September consumer sentiment index will be released at 1500 BST.

No major corporate earnings were slated to be released on Friday.

Reporting by Iain Gilbert at Sharecast.com

Dow Jones - Risers

Intel Corp. (INTC) $35.03 3.06% Amgen Inc. (AMGN) $272.39 0.45%

Dow Jones - Fallers

Cisco Systems Inc. (CSCO) $67.09 -1.12% Apple Inc. (AAPL) $255.15 -0.67%

S&P 500 - Risers

PACCAR Inc. (PCAR) $100.95 5.63% Intel Corp. (INTC) $35.03 3.06% TripAdvisor Inc. (TRIP) $17.52 2.82% Texas Instruments Inc (TXN) $186.56 2.48% Electronic Arts Inc. (EA) $171.40 1.83% Brighthouse Financial, Inc. (BHF) $55.79 1.55% Willis Towers Watson Public Limited Company (WTW) $343.04 1.48% Charter Communications Inc. (CHTR) $274.35 1.40% Diamondback Energy Inc. (FANG) $147.65 1.28% Ulta Salon, Cosmetics & Fragrance Inc. (ULTA) $545.94 1.20%

S&P 500 - Fallers

eBay Inc. (EBAY) $91.85 -1.35% Cisco Systems Inc. (CSCO) $67.09 -1.12% Seagate Technology Plc (STX) $218.24 -0.73% Ipg Photonics Corp. (IPGP) $78.72 -0.70% Apple Inc. (AAPL) $255.15 -0.67% DENTSPLY Sirona Inc. (XRAY) $12.30 -0.57% Synopsys Inc. (SNPS) $484.52 -0.55% Booking Holdings Inc. (BKNG) $5,553.79 -0.39% Cognizant Technology Solutions Corp. (CTSH) $66.41 -0.39% American Airlines Group (AAL) $11.35 -0.35%

Nasdaq 100 - Risers

PACCAR Inc. (PCAR) $100.95 5.63% Intel Corp. (INTC) $35.03 3.06% Texas Instruments Inc (TXN) $186.56 2.48% Qvc Group Inc Series A (QVCGA) $13.06 2.11% Workday, Inc. (WDAY) $247.77 2.07% Electronic Arts Inc. (EA) $171.40 1.83% Vodafone Group Plc ADS (VOD) $11.46 1.69% Charter Communications Inc. (CHTR) $274.35 1.40% Ulta Salon, Cosmetics & Fragrance Inc. (ULTA) $545.94 1.20% Wynn Resorts Ltd. (WYNN) $127.29 1.15%

Nasdaq 100 - Fallers

JD.com, Inc. (JD) $34.49 -1.92% NetEase Inc. Ads (NTES) $148.17 -1.80% eBay Inc. (EBAY) $91.85 -1.35% Cisco Systems Inc. (CSCO) $67.09 -1.12% Seagate Technology Plc (STX) $218.24 -0.73% Apple Inc. (AAPL) $255.15 -0.67% DENTSPLY Sirona Inc. (XRAY) $12.30 -0.57% Synopsys Inc. (SNPS) $484.52 -0.55% Booking Holdings Inc. (BKNG) $5,553.79 -0.39% Cognizant Technology Solutions Corp. (CTSH) $66.41 -0.39%