Stock Market Update

The stock market remains on track for a higher opening as tech names are poised for a rebound, though futures are off their best levels as oil moves higher following threats of renewed strikes on Iran from President Trump.

Initial jobless claims for the week ending June 6 increased by 4,000 to 229,000 (Briefing.com consensus: 222,000), while continuing claims for the week ending May 30 increased by 24,000 to 1.795 million.

Jobless claims were higher in the latest week, but the key takeaway remains that they are not at levels that would connote a material degradation of the labor market.

The Producer Price Index for final demand increased 1.1% month-over-month in May (Briefing.com consensus: 0.7%) following a downwardly revised 1.1% increase (from 1.4%) in April. Excluding food and energy, the index for final demand jumped 0.4% month-over-month (Briefing.com consensus: 0.4%) following a downwardly revised 0.7% increase (from 1.0%) in April.

On a year-over-year basis, the index for final demand was up 6.5%, while the index for final demand, excluding food and energy, was up 4.9%.

The key takeaway from the report is that producers aren't finding much price relief; hence, it is expected that consumers won't find much price relief in the near-term either, unless producers choose to absorb the higher costs.