Market Snapshot: U.S. stock futures mostly lower as investors wait for consumer price index report

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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
    ES00,
    -0.15%

    slipped less than a percent to 4,573.25

  • Dow Jones Industrial Average futures
    YM00,
    +0.09%

    were up 0.1% at 35,704

  • Nasdaq-100 futures
    NQ00,
    -0.29%

    fell 0.3% to 14,996

The Dow industrials
DJIA,
+0.86%

closed up 305.28 points, or 0.9%, to 35,768 on Wednesday, with the S&P 500
SPX,
+1.45%

gaining 1.5% to 4,587.18. The Nasdaq Composite
COMP,
+2.08%

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
TMUBMUSD10Y,
1.938%

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.

Read: Will hot inflation data kill the stock-market bounce? What investors want to see

And: High inflation has jacked up the cost of food, gas, cars and rent – and there’s little relief in sight

“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.

More earnings news is ahead from Twitter
TWTR,
+5.14%
,
PepsiCo Inc.
PEP,
-0.05%
,
Coca-Cola
KO,
-1.55%

and Philip Morris International Inc.
PM,
+0.24%
.

What companies are in focus?
How are other assets trading?