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Dow Jones futures not taking any chances with US PCE report

Yesterday the Dow Jones was under pressure from the very opening, weighed down for the most part by the slide in the price of Salesforce stock. The index tried several times to force a move below 38k, but in the event that level capped the downside into the close. The low seen was set at exactly 38,000. The index later closed 330 points lower, at 38,111. Overnight, despite the gains in Asia earlier today, the Dow futures have continued to struggle for traction. Of course that very important US PCE report could change all that, as it will be released before live trading resumes. The markets expect the annualised core rate of PCE to remain unchanged at 2.8%. April spending and income are expected to fall back though and the monthly core inflation rate is forecast to remain unchanged at 0.3%. So, any surprises here will evoke a sharp reaction today. The Dow Jones will be front and centre of that reaction, as will the dollar and right now the Dow Jones futures appear not be taking any chances with a benign set of data this afternoon. The current indication is for the Dow Jones to reopen at around 38,055. Also worth bearing in mind is the fact that it is the last trading day of the month. 

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