Stock futures trade cautiously ahead of inflation data
The Bureau of Labor Statistics is expected to say the consumer price index rose 0.5% month-over-month in July
Stocks face tailwinds: Market expert
Hodges Capital Management founder Craig Hodges on his outlook for the market amid inflationary pressures and labor shortages.
U.S. equity futures are trading cautiously ahead of the release of inflation data.
The major futures indexes are pointing to a small gain on the Dow.
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Investors will be watching for the latest report on retail inflation.
The Bureau of Labor Statistics is expected to say the consumer price index rose 0.5% month-over-month in July, trailing June’s stronger-than-expected growth of 0.9%, the highest since August 2008.
On a year-over-year basis watch for prices to increase 5.3% in July, just a notch below June’s 5.4% annual growth rate which was also the highest since August 2008. If you factor out volatile food and energy costs, the core consumer price index likely rose 0.4% last month and is expected to increase 4.3% year-over-year.
CONSUMERS COULD SEE PRICES RISE AS WESTERN DROUGHTS WORSEN
In Asia, the Nikkei 225 in Tokyo rose 0.7%, Hong Kong's Hang Seng added 0.2% and China's Shanghai Composite Index added 0.1%.
In Europe, London's FTSE added 0.4%, Germany's DAX was higher by 0.1% and France's CAC gained 0.3%.
One stock that will be active on Wednesday will be WW International. Shares are down 26% in the premarket following quarterly results that missed expectations.
The New York-based company said it had net income of 12 cents per share. Earnings, adjusted for non-recurring costs, came to 48 cents per share. The expectation was for 67 cents.
The weight-loss program operator posted revenue of $311.4 million in the period, which also missed Street forecasts.
On Wall Street, the S&P 500 and Dow Jones Industrial Average closed at record highs Tuesday after the Senate passed an infrastructure package and oil prices mostly recovered from Monday’s slump.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 44782 | -128.65 | -0.29% |
| SP500 | S&P 500 | 6047.15 | +14.77 | +0.24% |
| I:COMP | NASDAQ COMPOSITE INDEX | 19403.947849 | +185.78 | +0.97% |
The S&P 500 recovered from an early slip and added 0.1% to 4,436.75. The Dow Jones Industrial Average rose 0.5% to 35,264.67. The tech-heavy Nasdaq slipped 0.5% to 14,788.09.
The Senate’s passage of the $1 trillion infrastructure bill gave a boost to shares of steel and aluminum makers, construction materials providers, and construction and engineering firms.
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Banks made some of the strongest gains as bond yields edged higher. Banks benefit from higher yields, which allow them to charge higher interest rates on loans. The yield on the 10-year Treasury rose to 1.37%.
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In energy markets, benchmark U.S. crude slipped 79 cents to $67.47 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the price standard for international oils, gave up 71 cents to $69.93 per barrel in London.
The Associated Press contributed to this report.