WASHINGTON (dpa-AFX) - Stocks are likely to move to the upside in early
trading on Friday following the release of closely watched inflation data. The
major index futures are currently pointing to a higher open for the markets,
with the S&P 500 futures up by 0.4 percent.

Early buying interest may be generated in reaction to a Commerce Department
report showing readings on consumer price inflation in the month of May came in
line with economist estimates.

The report said the personal consumption expenditures (PCE) price index came in
unchanged in May after rising by 0.3 percent in April. The unchanged reading
matched expectations.

The core PCE price index, which excludes food and energy prices, inched up by
0.1 percent in May after climbing by an upwardly revised 0.3 percent in April.

Economists had expected the core PCE price index to tick up by 0.1 percent
compared to the 0.2 percent increase originally reported for the previous month.

The Commerce Department also said the annual rates of growth by the PCE price
index and the core PCE price index both slowed to 2.6 percent from 2.7 percent
and 2.8 percent, respectively. The slowdowns also matched estimates.

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

The report showed personal income climbed by slightly more than expected, while
personal spending rose by slightly less than expected.

The slowdowns in the annual rates of consumer price may lead to optimism about
the outlook for interest rates, as Fed officials have repeatedly said they need
greater confidence inflation is slowing before they will consider cutting rates.

Shortly after the start of trading, MNI Indicators is scheduled to release its
report on Chicago-area business activity in the month of June.

The Chicago business barometer is expected to climb to 40.0 in June from 35.4 in
May, although a reading below 50 would still indicate contraction.

The University of Michigan is also due to release its revised reading on
consumer sentiment in June. The consumer sentiment index for June is expected to
be upwardly revised to 65.8 from 65.6, which was down from 67.4 in May.

With traders looking ahead to today's release of closely watched inflation data,
stocks turned in a lackluster performance during trading on Thursday. The major
averages spent the day bouncing back and forth across the unchanged line.

The major averages eventually ended the session modestly higher. The Dow crept
up 36.25 points or 0.1 percent to 39,164.06, the Nasdaq rose 53.53 points or 0.3
percent to 17,858.68 and the S&P 500 inched up 4.97 points or 0.1 percent to
5,482.87.

In overseas trading, stock markets across the Asia-Pacific region moved mostly
higher during trading on Friday, Japan's Nikkei 225 Index climbed by 0.6
percent, while China's Shanghai Composite Index advanced by 0.7 percent.

Meanwhile, the major European markets are turning in a mixed performance on the
day. While the French CAC 40 Index has slid by 0.8 percent, the German DAX Index
is up by 0.1 percent and the U.K.'s FTSE 100 Index is up by 0.2 percent.

In commodities trading, crude oil futures are rising $0.39 to $82.13 a barrel
after advancing $0.84 to $81.74 a barrel on Thursday. Meanwhile, after jumping
$23.40 to $2,336.60 an ounce in the previous session, gold futures are climbing
$12.90 to $2,349.50 an ounce.

On the currency front, the U.S. dollar is trading at 160.57 yen versus the
160.76 yen it fetched at the close of New York trading on Thursday. Against the
euro, the dollar is valued at $1.0701 compared to yesterday's $1.0704.



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