Editorial StaffStock futures rose Thursday as investors look ahead to inflation data and earnings that may provide insight into the future health of the economy.
Futures for the Dow Jones Industrial Average were up 147 points, or 0.5%, shortly after 4 a.m. ET. S&P 500 and Nasdaq 100 futures gained 0.5% and 0.3%, respectively.
The latest U.S. consumer price index data is slated for release at 8:30 a.m. ET. A Dow Jones’ consensus estimate shows the CPI rose 0.3% in September, up from 0.1% in August. That would bring inflation’s annual pace to 8.1% from 8.3%. Weekly jobless claims data will also be released Thursday morning.
Thursday’s CPI report will come a day after the government said the producer price index, another inflation gauge, rose more than expected.
On top of that, investors digested minutes from the September Federal Reserve meeting. The minutes showed the central bank expected to keep hiking interest rates until it sees receding inflation. But one comment made some think the Fed might instead slow the rate hikes, if not roll them back, if financial markets tumult continued.
“Fed speakers similarly have, since the last meeting, been wedded to the message that their commitment remains solid, even in the face of global financial fault lines showing signs of strain,” said Quincy Krosby, chief global strategist at LPL Financial.
European stocks retreat as investors brace themselves for U.S. inflation data
European markets pulled back slightly on Thursday morning as investors around the world prepare themselves for the latest U.S. inflation data.
The pan-European Stoxx 600 fell 0.4% in early trade, with telecoms stocks shedding 1% to lead losses as most sectors and major bourses slid into the red. Autos and travel stocks nudged 0.5% higher.
What to watch for Thursday: inflation data, earnings
Investors will be watching for data points Thursday that can help predict the future health of the markets and broader economy.
They will be watching for data from the consumer price index, which gauges inflation. Estimates expect the CPI will have risen 0.3% in September, up from 0.1% in August. If that happens, inflation’s annual pace would fall to 8.1% from 8.3%.
Investors will also be following corporate earnings from companies like Delta and Domino’s Pizza. Market observers say earnings are becoming more important to understanding how inflation and the surging dollar will impact the markets, as disappointing earnings could trigger uneasy investors to reduce exposure. This week marks the start of a new corporate earnings season.
Source: CNBC
