U.S. stock futures were headed mostly lower ahead of data that’s expected to show consumer price inflation for January remained at a 40-year high. Earnings reports from Coca-Cola Co. and Twitter Inc. were ahead, while shares of The Walt Disney Co. surged on results from the entertainment giant.
How are stock-index futures trading?
S&P 500 index futures
slipped less than a percent to 4,573.25
Dow Jones Industrial Average futures
were up 0.1% at 35,704
fell 0.3% to 14,996
The Dow industrials
closed up 305.28 points, or 0.9%, to 35,768 on Wednesday, with the S&P 500
gaining 1.5% to 4,587.18. The Nasdaq Composite
dominated with a 2.1% rise to close at 14,490.37, marking its best daily percentage gain since Jan. 31, according to Dow Jones Market Data.
What’s driving the markets?
Thursday saw some nervousness return to markets as U.S. consumer price inflation (CPI) data loomed. Bond yields were once again inching up, with the 10-year Treasury note
rising one basis point to 1.936%.
January consumer prices are forecast to climb 7.2% on an annual rate, according to a survey of economists polled by The Wall Street Journal. A surge of 7% annually in December was the highest pace in 40 years.
“Several forecasters expect inflation could even be higher (up to 7.6 %). Volatility will be back on the U.S. bond market today and, given the long string of shocks that have taken Fed rate expectations sharply higher for this year, the slightest “miss” to the downside could have more impact than a modest upside surprise,” said a team of strategists at Saxo Bank, in a note to clients.
A higher-than-expected inflation number could pile pressure particularly on interest-rate sensitive technology stocks. The Nasdaq Composite suffered its biggest percentage drop in almost two years last month, as well as its worst January in over a decade due to worries over inflation and tighter Federal Reserve monetary policy.
Due at 8:30 a.m. Eastern Time, the monthly U.S. CPI is expected to rise 0.4% on a headline and core rate, with weekly jobless benefit claims due at the same time. The January federal budget will follow at 2 p.m. Eastern.
What companies are in focus?
climbed 7% after the entertainment giant reported record revenue and a profit of more than $1 billion as it added streaming subscribers than expected over the holidays, theme-park profit surged.
shares were up 19% after the cloud communication software group posted a strong outlook and earnings and sales that shot past Wall Street estimates.
- Uber Technologies Inc. UBER stock rose 4% as the ride-share operator reported forecast-beating profit and sales.
How are other assets trading?
The ICE U.S. Dollar Index
a measure of the currency against a basket of six major rivals, was modestly higher.
West Texas Intermediate crude for March delivery
slipped 0.1%to $1,834.10.
rose 0.5% to trade near $44,743.
The Stoxx 600 Europe
rose 0.1%, while the FTSE 100
The Shanghai Composite
rose 0.1%, while the Hang Seng Index
gained 0.3% and Japan’s Nikkei 225