G-7, Consumer Sentiment, Record Week: 3 Things to Watch By Investing.com

By Christiana Sciaudone

Investing.com — Inflation, shminflation. Traders dismissed inflation data that came in above expectations to drive stocks higher on Thursday.

It was the data everyone had been eyeing this week. The Labor Department said on Thursday its consumer price index rose 0.6% last month after edging up 0.9% in April. The uptick in consumer prices in May lifted the year-on-year increase in the CPI to 5% from 4.2% in April, the highest rate since the 1980s. Investors are going with the Fed’s position that it’s a passing phase.

Starbucks (NASDAQ:SBUX) appears to be running out of supplies, like so many industries (chips!) out there (are we sure about that transitory inflation, Fed?), The New York Times reported.

GameStop Corp (NYSE:GME) continued to do its meme thing, dropping 25% after saying it will sell yet millions more in shares, taking full advantage of retail investors.

Here’s to another slow summer close to the week. Have a good one, people

Here are three things that could affect markets tomorrow:

1. Let’s chat

Leaders from the G-7 nations start their meeting in Cornwall, England. President Joe Biden is making his first trip to the U.K. during his administration. He and his counterparts are expected to discuss the economic rebound from the pandemic.

2. Feeling sentimental

After today’s highly-anticipated inflation numbers, Friday’s economic data release is the decidedly less sexy University of Michigan consumer sentiment reading. The initial June print is expected to come in at 84.2, a slight bump from the prior 82.9. The number will be released at 10:00 AM ET (1400 GMT).

3. Another record?

U.S. stocks will look to close out the week on another high note. Investors shrugged off the latest signs of inflation to send the S&P 500 to a fresh record and the Nasdaq was near its April highs on Thursday.