The Commerce Department is expected to report its PCE Price Index increased in July and Salesforce shares jumped after it beat expectations on improved margins. Here’s what investors need to know today.
1. Fed’s Preferred Inflation Gauge Projected to Tick Higher
The latest Personal Consumption Expenditure (PCE) Price Index, a key measure of inflation, is projected to rise to an annual rate of 3.3% for July, up from 3% in June, when the Commerce Department releases that data at 8:30 a.m. The core PCE inflation reading, which strips out volatile food and energy costs, is projected to climb to 4.2% year-over-year in July from 4.1% in June, while the monthly core PCE Index is projected to have increased 0.2% in July after rising 0.17% in June.
2. Salesforce’s Outlook Beats Expectations on Improved Margins
Salesforce (CRM) shares jumped 5.5% in pre-market trading after it reported a full-year earnings guidance of $8.04 to $8.06 a share on revenue between $34.7 billion to $34.8 billion, better than analyst forecasts of $7.42 a share on revenue of $34.66 billion. The customer relations software provider said restructuring improved margins, while its growth was primarily driven by strong sales and momentum in its MuleSoft platform as it continues to build out its artificial intelligence (AI) services.
3. UBS Shares Jump After Reporting Record Profit
UBS Group (UBS) posted a record profit following its takeover of Credit Suisse in March, as the Swiss-based bank credited a stabilization of deposits at Credit Suisse and cost reductions made from cutting its workforce. Shares of UBS gained almost 4% in pre-market trading after reporting a second-quarter profit of $28.9 billion, below analyst estimates of $33.5 billion.
4. CrowdStrike Beats Earnings Estimates on Revenue From AI Platform
CrowdStrike Holdings (CRWD) shares rose 1.2% in pre-market trading after it reported adjusted quarterly earnings of $0.74 a share, better than the $0.36 from the same quarter last year, and the $0.56 a share that analysts expected. The security software provider cited momentum with its AI-powered Falcon platform, which provides cloud, identity, and security information and event management services, contributing more than $500 million in annual recurring revenue.
5. Okta Shares Jump After Improved Earnings Forecast on Continued Business Spending
Okta Inc (OKTA) shares surged 10% in pre-market trading after it raised its annual earnings forecast after the weak business spending it projected last quarter did not materialize. The identity-management provider expects to produce yearly earnings of $1.17 to $1.20 a share on revenue of between $2.21 billion to $2.22 billion, better than the $0.91 a share earnings on revenue of $2.18 billion.