U.S. stock futures were lower Wednesday as Wall Street awaited the latest consumer price index (CPI) data for insights on the pace of inflation. Futures tied to major indices slipped, with the Dow losing 68 points, or 0.1%, the S&P 500 falling by 0.2%, and the Nasdaq ticking down 0.1%. The major averages fell during Tuesday’s session as the market took a breather from its postelection rally.
The 30-stock Dow Jones Industrial Average fell around 382 points, or 0.9%, the S&P 500 declined 0.3%, and the tech-heavy Nasdaq inched down 0.1%. Tom Hainlin, senior investment strategist at U.S. Bank Wealth Management, said, “Part of the market decline Tuesday is just a little bit of profit-taking based on the strong gains — especially post-election — and some of it may be just some positioning ahead of tomorrow’s inflation report and Friday’s retail sales report.”
Investors will be looking toward October’s CPI numbers, scheduled for release Wednesday morning, to see how much the costs of goods and services have risen. Economists surveyed by Dow Jones are expecting the CPI to increase 0.2% for the month and 2.6% year over year.
The pace of price increases is one of the key components informing the Federal Reserve’s decision to cut or maintain interest rates. Other notable economic data releases later this week include the producer price index data and retail sales numbers, which will be announced on Thursday and Friday, respectively.
U.S. futures drop ahead of CPI
Scott Helfstein, head of investment at Global X ETFs, said, “This is a busy week with consumer prices, producer prices, and retail sales. All of which could signal that the economy remains strong.” However, he noted, “Ironically, markets may be less sensitive to data this week after the election and the Fed cut last week.”
European stocks traded around the flatline Wednesday, with global markets focused on upcoming U.S. inflation data. Just Eat Takeaway stock soared 20% shortly after the open Wednesday after the company said it had struck a deal to sell its U.S. unit Grubhub to Wonder for $650 million.
RWE was also a best performer on the index, its shares rocketing 19.1% Wednesday morning after the German energy company upgraded its mid-term financial targets. ABN AMRO traded 1% lower after the Dutch lender posted a 9% fall in quarterly net profit compared to a year earlier. Shares of insurer Aegon were up 1.1% after the financial services group beat expectations with a 22% rise in third-quarter net profit.
U.S. stock futures were little changed Tuesday night. Futures tied to major indices fell just slightly, with the Dow dropping 16 points, or 0.04%, the S&P 500 ticking down 0.05%, and the Nasdaq down 0.09%.
