Stock futures are slightly higher as traders brace for key inflation report: Live updates

Stock futures ticked higher Thursday night as investors prepared for a crucial inflation reading that's closely watched by the Federal Reserve.

Futures tied to the Dow Jones Industrial Average advanced 50 points, or 0.1%. S&P 500 futures gained 0.2%, while Nasdaq 100 futures added 0.3%.

In extended trading, Ulta dropped about 7% after missing top and bottom line expectations in the second quarter, while athletic apparel retailer Lululemon Athletica gained 6% on better-than-expected earnings. Dell Technologies added 3% as its fiscal second quarter results beat estimates, aided by server sales.

The market has seen choppy trading action this week leading up to Nvidia's quarterly results. The artificial intelligence darling slumped on Thursday, weighing on the S&P 500 and dragging the Nasdaq Composite lower. The Dow was the outlier among the three major averages, adding more than 240 points to close at a fresh record.

A new catalyst for stocks awaits on Friday at 8:30 a.m. ET: the personal consumption expenditures price index. Economists polled by Dow Jones anticipate a 0.2% monthly increase in July for headline prices, or 2.5% on an annual basis. The core reading is expected to have gained 0.2% from the prior month, or 2.7% from 12 months earlier.

The Fed keeps a close eye on this metric, and it could still influence policymakers' rate decision in September.

"The market is set to absorb the results of the PCE release, with consensus estimates focused on the core year-over-year report inching slightly higher at 2.7% following 2.6% for the previous print," said LPL Financial's chief global strategist Quincy Krosby.

"Because there are some Fed members suggesting they need more data to confirm that inflation is continuing on a