Stock Market Today: Dow, S&P 500 and Nasdaq set for slightly higher open as CPI report looms; JPMorgan and Goldman Sachs launch earnings season
How are stock-index futures trading:
S&P 500 futures are up 0.1%.
Dow Jones Industrial Average futures are adding 0.1%.
Nasdaq 100 futures are gaining 0.2%.
On Tuesday, the Dow Jones Industrial Average rose 221 points, or 0.52%, to 42,518, the S&P 500 increased 7 points, or 0.11%, to 5,843, and the Nasdaq Composite dropped 44 points, or 0.23%, to 19,044.
Futures indicate stocks may open open slightly higher on Wednesday, but all that could change depending on crucial inflation data and a flurry of bank earnings before the starting bell rings on Wall Street.
The S&P 500 sits 4.1% below its record closing high registered on December 6, with the pullback mainly blamed on surging Treasury yields amid fears revived inflation will prevent the Federal Reserve cutting interest rates at the pace investors had hoped.
Consequently, the consumer price inflation report for December, released at 8:30 a.m. Eastern, is critical for investor sentiment. Too hot and benchmark Treasury yields may rise towards the 5% level, triggering anxiety among equity investors. Notably cooler and traders’ may rediscover their bullish mood, pushing yields lower and stocks higher.
“Despite Tuesday’s [producer prices] inflation report coming in cooler than anticipated, the stranglehold of high yields persists. All eyes are now on Wednesday’s consumer price index update, a pivotal indicator that could amplify or temper the prevailing inflation worries,” said Stephen Innes, managing partner at SPI Asset Management.