U.S. Stocks May Extend Rebound Following Tamer-Than-Expected Inflation Data

Stocks may move to the upside in early trading on Friday, extending the significant rebound seen in the previous session. The major index futures are currently pointing to a slightly higher open for the markets, with the S&P 500 futures up by 0.1 percent.

The futures turned positive following the release of a highly anticipated Commerce Department report showing consumer price growth in the U.S. slowed by more than expected in the month of November.

The report said the annual rate of consumer price growth decelerated to 2.6 percent in November from a downwardly revised 2.9 percent in October.

Economists had expected the pace of price growth to slow to 2.8 percent from the 3.0 percent originally reported for the previous month.

The annual rate of growth by core consumer prices, which exclude food and energy prices, also slowed to 3.2 percent in November from a downwardly revised 3.4 percent in October.

Economists had expected core consumer price growth to decelerate to 3.3 percent from the 3.5 percent originally reported for the previous month.

The readings on inflation, which are said to be preferred by the Federal Reserve, were include in the Commerce Department’s report on personal income and spending.

The bigger than expected slowdown in consumer price growth is likely to add to optimism the Fed is poised to pivot to cutting interest rates early next year.

Meanwhile, a steep drop by shares of Nike (NKE) may weigh on the Dow, with the athletic apparel and footwear giant plunging by 11.5 percent in pre-market trading.

The nosedive by Nike comes after the company lowered its revenue outlook and unveiled plans to cut $2 billion in costs over the next three years.

The Commerce Department released a separate report showing new orders for U.S. manufactured durable goods surged by much more than expected in the month of November.

The report said durable goods orders spiked by 5.4 percent in November after tumbling by a revised 5.1 percent in October.

Economists had expected…