November 29, 2022

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Stock futures rose as investors await inflation data

Stock futures rose as investors await inflation data

Traders work on the floor of the New York Stock Exchange (NYSE) in New York.

Brendan McDermid | Reuters

Stock futures rose slightly on Wednesday as investors look forward to inflation and earnings data in the coming days that may provide insight into the health of the economy going forward.

Dow Jones Industrial Average futures rose 48 points, or 0.16%. Nasdaq 100 futures are up 0.15%, while S&P 500-related futures are up 0.18%.

The action comes after a day of small market volatility as investors digested minutes from the Federal Reserve’s September meeting. Minutes showed The central bank expected to continue raising interest rates until it sees the decline in inflation. But one comment made some believe that the Fed may instead slow, if not reverse, rate hikes if the turmoil in financial markets continues.

The S&P 500 fell 0.33% to close at 3577.03. The Nasdaq Composite Index is down 0.09% to 10417.10. The Dow Jones Industrial Average fell 0.10%, or 28.34 points, to close at 29,210.85.

“Fed speakers have similarly, since the last meeting, connected with the message that their commitment remains strong, even in the face of global financial fault lines that are showing signs of tension,” said Quincy Crosby, chief global strategist at LPL Financial.

Early in the day, the producer price index for September, a measure of inflation that looks at wholesale prices at final demand, beat expectations. It rose 0.4% in September, above the Dow Jones consensus estimate of 0.2%.

Investors have more data to weigh on Thursday as the CPI comes out in the morning. Dow Jones consensus estimates show CPI rose 0.3% in September, up from 0.1% in August. This will bring the annual inflation pace to 8.1% from 8.3%.

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Despite what she called a tepid response to PPI data and the Fed meeting minutes, Crosby said markets could be tested if the CPI reading is higher than expected, particularly in bond yields.

Family names including Delta AirlinesAnd the Walgreens And the Domino’s Pizza He will report earnings before the bell Thursday, which comes as part of a week that marks the start of the new corporate earnings season.

Weekly jobless claims data will also be released Thursday morning.