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Christine Lagarde, president of the European Central Bank

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Stocks look set for a higher open after inflation data topped estimates. 

Dow Jones Industrial Average  futures have gained 118 points, or 0.3%, while  S&P 500  futures are up 0.1% and technology-heavy  Nasdaq Composite  futures have declined 0.2%. 

Consumer prices rose 5% year over year, at a faster pace than expected. On a monthly basis, consumer prices rose 0.6% in May, while core prices, excluding food and energy, rose by 0.7%. Expectations, according to a Dow Jones Newswires/Wall Street Journal poll, were for both CPI and the core measure that excludes food and energy costs to rise 0.5% in May.

Meanwhile, weekly jobless claims continued to decline, falling by 9,000 to 376,000 and remaining below 400,000 claims for a second straight week.

Most Asian markets made minor advances, with the Nikkei 225 rising 0.3%. The Stoxx Europe 600 was little changed after finishing at a record high on Wednesday.

The European Central Bank said on Thursday that it will keep its bond-purchasing program in place and left interest rates unchanged at minus 0.5%. Investors are now watching ECB President Christine Lagarde‘s press conference.

“If the transitory effect of inflation, as anticipated by the Fed, turns out to be confirmed, then the chances of an extended rally on stocks will be on the rise,” said Pierre Veyret, technical analyst at ActivTrades.

The yield on the benchmark 10-year yield rose to 1.52% after the CPI report.

GameStop (ticker: GME) shares were falling 7% after disclosing a Securities and Exchange Commission probe into trading in its stock, as well as that of other so-called meme stocks. GameStop reported a first-quarter revenue beat, a smaller-than-expected quarterly loss, said it would bring two Amazon.com executives in to lead the company and sell as many as 5 million shares.

Wingstop  (WING) stock gained 1.6% after getting upgraded to Buy from Neutral at BTIG. 

Sherwin-Williams  (SHW) stock rose 0.6% after getting upgraded to Buy from Underperform at Bank of America. 

United Parcel Service  (UPS) stock gained 1.5% after getting upgraded to Overweight from Neutral at JPMorgan. 

Fastly  (FSLY) stock dropped 2.5% after getting downgraded to Perform from Outperform at Oppenheimer.  

Write to Jacob Sonenshine at jacob.sonenshine@barrons.com