All three of the major market averages (^DJI, ^IXIC, ^GSPC) are opening higher on Friday coming off of this morning’s in-line inflation print from the PCE index (Personal Consumption Expenditures).
Yahoo Finance’s Seana Smith and Brad Smith monitor market movements while Salesforce shares (CRM) seek to recover from a stock selloff fueled this week by the cloud computing company’s weaker-than-expected second-quarter guidance.
For more expert insight and the latest market action, click here to watch this full episode of Morning Brief.
This post was written by Luke Carberry Mogan.
Video Transcript
Taking a look at the Dow, the S and P 500 the NASDAQ all in positive territory.
As of right now, we saw a bit of a reversal in earlier trading here ahead of the Open.
Following that piece, the E print, that we got out at 830 we had seen all three of the major averages in futures trading.
Trading to the downside here, they quickly erased those gains, clearly opening here in positive territory just slightly from fraction here above the flat line.
Really, when it comes to all three of the major averages, we are seeing some pressure here yields today.
So again very important to watch today’s trading action and exactly as Wall Street, uh, digest the latest reading on inflation and tries to gauge what exactly this means for the Fed.
I’m just taking a quick look at CRM sales force because there was a major move lower.
In fact, I put up a story on this on the Yahoo finance platform because I was so compelled about some of the comments that we got yesterday from our guests.
Here’s why we look back at some of the trading activity that was in terms of the magnitude one of the biggest drops that we had seen since George W Bush was in office.
So nearly two decades, Uh, essentially there in the drop that we saw on CRM yesterday Slight bounce back here on the day You can’t even really call it a bounce back.
They’re up fractionally last I checked, but ultimately we’ll keep a close eye on that.
That was interesting to watch yesterday after earning.
It is interesting watching even beyond the sales for a story.
Just what exactly this means for software plays at large, right?
Just in terms of the spending, how the Capex is being allocated, whether or not they’re going to face a real headwind.
And it seems like that right now, in terms of the software plays, we’re not seeing companies spend as much on software and spend.
Instead, they’re allocating more towards a I spend and still we until we see some of these, uh, firms like sales force really ramp up their A. I capabilities incorporate that into their products more.
There is a large question about what this lag could potentially look like here.
And obviously, um, the fact that their revenue, their sales, could continue to suffer here for at least the coming quarters.
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