Stock futures hover near record after CPI report shows June inflation dip: Live updates

The consumer price index fell an unexpected 0.1% in June on a monthly basis, making the case for a rate cut by the Federal Reserve. On an annual basis, it rose 3%, near its lowest level in more than three years.

Economists polled by Dow Jones had expected the CPI to rise 0.1% month-on-month and 3.1% year-on-year. The core CPI, which excludes food and energy, rose less than expected.

—Fred Imbert

Shares of Pfizer rose more than 2% Thursday in premarket trading after the drugmaker said it would continue development of a once-daily version of its diet pill, danuglipron. The news follows “encouraging” data from an ongoing trial of the drug.

Pfizer said it plans to conduct studies in the second half of the year to evaluate multiple doses of danuglipron. In December, the company stopped a twice-daily version of the drug after patients had difficulty tolerating it in a mid-stage trial.

—Annika Kim Constantino, Tanaya Macheel

Shares of Delta Air Lines fell more than 7% after the airline issued disappointing third-quarter guidance. The company expects earnings per share in the range of $1.70 to $2.00. That’s below the StreetAccount consensus of $2.04 per share.

The weak outlook overshadowed better-than-expected second-quarter profits and revenue.

—Fred Imbert

PepsiCo shares fell more than 1% after the snack and beverage giant reported mixed results for its fiscal second quarter. The company earned $2.28 per share, topping LSEG’s estimate of $2.16. Revenue fell slightly short of expectations at $22.5 billion.

“During the second quarter, our business delivered net sales growth, strong gross and operating margin expansion and double-digit EPS growth, remaining agile despite challenging year-over-year net sales growth comparisons, moderate category performance in North America convenient foods and impacts associated with certain product recalls at Quaker Foods North America,” CEO Ramon Laguarta said in a statement.

—Fred Imbert

On Wednesday, the Federal Reserve fined Citigroup $60.6 million for violating a 2020 enforcement action, according to a press release.

“Citigroup has not made sufficient progress in addressing its data quality management issues and has not implemented compensating controls to manage its current risk,” the press release said. “The Board continues to monitor Citigroup’s actions to comply with the 2020 measure, which remains in effect.”

The fine imposed by the Council, combined with those from the Office of the Comptroller of the Currency, totals approximately $135.6 million for the bank.

—Lisa Kailai Han

Inflation and the timing of the Federal Reserve’s first rate cut could be the main focus for markets on Thursday, as the June consumer price index is due out before the close. Economists polled by Dow Jones expect the CPI to rise 0.1% month-on-month and 3.1% year-on-year.

That would remain above the Fed’s 2% inflation target but would be a slowdown from May. Federal Reserve Chairman Jerome Powell said on Capitol Hill Wednesday that the Fed doesn’t need to wait for inflation to hit 2% to cut rates, especially given signs of a slowing labor market.

“The Fed has been more focused on levels for some time, and now it looks like they’re starting to focus more on trends. And if that’s the case, then the odds of a rate cut increase,” said Matt Brenner, senior vice president of investment and product management at MissionSquare Retirement.

— Jesse Pound

With Wednesday’s rally, the S&P 500 started the month with seven straight days of gains for the first time since September 2013. The index is now up 3.2% to start July.

Through Wednesday, the S&P 500 had not seen a 1% gain or decline since June 5, more than a month ago. That ends a 22-session streak without a 1% gain, the longest such streak since November 2021.

— Robert Hum

Here are the stocks that are moving the most during extended trading hours:

• WD-40 Company — Shares gained 11% after the metal lubricant maker reported fiscal third-quarter results that beat analysts’ expectations.
• PriceSmart — The membership warehouse club operator added 6% after posting higher fiscal third-quarter profit and revenue.
• Costco Wholesale — Shares gained 3% after the membership-only retail chain announced its first membership fee increase since 2017.

Read the full list of moving actions here.

—Lisa Kailai Han

Stock futures were nearly flat late Wednesday.

Dow futures slipped about 0.1% shortly after 6 p.m. ET, while S&P 500 and Nasdaq 100 futures were both slightly below flat.

—Lisa Kailai Han