Opening Comment — Friday, February 27, 2026
DJIA: 49,499.20, up 17.05
S&P 500: 6,908.86, down 37.27
NASDAQ: 22,878.38, down 273.70
Stocks lower ahead of PPI data
Stock futures are lower Friday morning ahead of today’s January Producer Price Index (PPI) and February’s Chicago purchasing managers’ index (PMI) data from Market News International (MNI). As of 7:15 AM ET, the Dow is decreasing 0.6%, while the S&P 500 is down 0.4%. The Nasdaq 100 is also falling 0.4% relative to fair value on the GLOBEX.
U.S. equities were mostly lower on Thursday as initial jobless claims increased while continuing claims for the week prior decreased. The Dow was little changed, while the tech-heavy Nasdaq Composite fell 1.2%. The S&P 500 decreased 0.5% with seven of 11 sectors finishing in negative territory. The Financials sector was the top performer, rising 1.3%, while the Information Technology sector was the bottom performer, falling 1.8%.
Technical Analysis
As of midday Thursday, the S&P 500 Index is still in an uptrend, with support at the 200 day moving average (6,555) and resistance at the 50 day moving average (6,898) and at 7,000.
On the data front, the headline PPI for January is expected to show price increases of 0.3% month-over-month (MOM) and 2.6% year-over-year (YOY) versus the prior month’s increases of 0.5% and 3.0%, respectively. The core PPI is expected to show price increases of 0.3% MOM and 3.0% YOY versus the prior month’s increases of 0.7% and 3.3%, respectively. Meanwhile, construction spending is expected to have increased 0.2% MOM in December. The MNI Chicago PMI for February is expected to come in at 52.1, down from the prior month’s 54.0. The Kansas City Federal Reserve’s (Fed’s) February Survey of Tenth District Services will be released today, with the services composite index projected to remain steady at 2.
Across the pond, European stocks are mixed in mid-day trading as France’s finalized fourth gross domestic product (GDP) showed quarter-over-quarter growth of 0.2% quarter-over-quarter and 1.2% YOY, versus the preliminary readings of 0.2% and 1.1%, respectively. The country’s preliminary February Consumer Price Index (CPI) registered a greater-than-expected increase of 0.7% MOM and 1.0% YOY. The Producer Price Index (PPI) in January increased by 0.5% MOM, while falling 2.3% YOY. Meanwhile, Germany’s February unemployment change came in similar to the prior month’s upwardly revised number, and the unemployment claims rate remained steady at 6.3%. The European Central Bank’s (ECB’s) January Consumer Expectations Survey showed one-year inflation expectations declining to 2.6% and three-year-ahead expectations remaining steady at 2.6%.
Overnight in Asia, stocks were mostly higher as Japan’s Tokyo CPI came in higher than expected in February on both a headline and core basis, rising 1.6% and 1.8% YOY, respectively. In January, the country’s retail sales and industrial production increased 4.1% and 2.2% MOM, respectively.
In FOREX trading, the U.S. dollar is little changed ahead of today’s U.S. PPI data.
Over in the commodity pits, West Texas Intermediate (WTI) crude oil is 2.4% higher at $66.74/barrel.
In the metals complex, gold is little changed at $5,184.05/ounce.