Breaking Stories

Market Snapshot: U.S. stock futures inch up as JPMorgan kicks off earnings, consumer price inflation data ahead

0

U.S. stock index futures inched up on Wednesday, with corporate earnings reports rolling in from JPMorgan Chase and Delta Airlines while investors await the September consumer price index.

How are stock-index futures trading?
  • Dow Jones Industrial Average futures
    YM00,
    +0.14%

    rose less than a percent to 34,282
  • S&P 500 futures
    ES00,
    +0.23%

    were flat at 4,345
  • Nasdaq-100 futures
    ES00,
    +0.23%

    rose 0.3% to 14,697

On Tuesday, the Dow Jones Industrial Average
DJIA,
-0.34%

fell 118 points, or 0.34%, to 34378, the S&P 500
SPX,
-0.24%

declined 11 points, or 0.24%, to 4351, and the Nasdaq Composite
COMP,
-0.14%

dropped 20 points, or 0.14%, to 14466.

What’s driving the market?

Stock markets have seen choppy action this week have investors have anxiously awaited the start of third-quarter U.S. corporate earnings reporting season, amid concerns supply-chain problems and labor shortages have dented profit margins.

Shares of tech giant Apple
AAPL,
-0.91%

fell 0.7% in premarket trading, after Bloomberg reported late Tuesday that the tech giant will cut iPhone 13 production due to global chip supply shortages.

The start of the U.S. earnings reporting season was underway, with JPMorgan Chase
JPM,
-0.77%

beating Wall Street forecasts on earnings per share as it released another $2.1 billion of loan loss reserves. Those shares rose 0.5% in premarket. BlackRock
BLK,
-0.42%

shares climbed 2% after the bank reported beats on both profit and revenue expectations and more than 20% growth on assets undermangement.

Analysts expect S&P 500 index earnings to rise 27.6% annually, a pace markedly slower than a 52.8% gain in the first quarter and 92.4% in the second quarter, which both benefited from favorable comparisons with the start of the COVID-19 pandemic last year. Bank of America has warned that guidance from companies could be ugly amid a “make or break quarter.”

Read: Will bank stocks’ wild rally continue? Here are the numbers to watch in this week’s earnings

Opinion: Beating the market would still be tough even if you knew the S&P 500’s earnings before everyone else

September U.S. consumer prices are also in the spotlight for Tuesday, with economists forecasting that the monthly number will rise 0.3%, and the annual number steady stable at 5.3%. The numbers are due at 8:30 a.m. Eastern Time.

The CPI data will show how a 13% rally in U.S. crude prices has hit inflation, with chances of a stronger number more likely than a softer one, said Ipek Ozkardeskaya, senior analyst at Swissquote, in a note to clients.

“And a strong inflation [number] will only reinforce the expectation that the Federal Reserve (Fed) would start tapering its bond purchases by next month, that’s already priced in. Yet, a too strong figure could boost expectations of an earlier rate hike from the Fed, and that’s not necessarily fully priced in,” said the analyst.

Later on Wednesday, investors will get the latest Federal Open Market Committee meeting minutes. That could “reiterate the Fed’s willingness to start tapering the bond purchases soon and could give a further insight regarding the need and the possibility of seeing the rate normalization happen before 2023,” said Ozkardeskaya.

What companies are in focus?
How are other assets trading?
  • The yield on the 10-year U.S. Treasury note
    TMUBMUSD10Y,
    1.571%

    slipped 1 basis point to 1.5666%. Yields and debt prices move in opposite directions.
  • The ICE U.S. Dollar Index
    DXY,
    -0.24%
    ,
    a measure of the currency against a basket of six major rivals,fell 0.2%.
  • U.S. oil futures were lower, with the benchmark
    CL00,
    -0.63%

    down 0.8% at $82.72 a barrel. Gold futures
    GC00,
    +1.01%

    rose 0.8% to $1,774.50 an ounce.
  • The Stoxx Europe 600
    SXXP,
    +0.50%

    rose 0.4%, while London’s FTSE 100
    UKX,
    -0.08%

    fell 0.1%.
  • The Shanghai Composite
    SHCOMP,
    +0.42%

    rose 0.4%, while Japan’s Nikkei 225
    NIK,
    -0.32%

    lost 0.3%.

Need to Know: This development may fully reopen the global economy — and the stock market has mostly ignored it

Previous article

London Markets: SoftBank-backed THG reels further after saying it can’t explain stock-price decline

Next article

You may also like

Comments

Leave a reply

Your email address will not be published. Required fields are marked *