US open: Positive open on the Street following in-line inflation report
By Iain Gilbert
Date: Wednesday 14 Nov 2018
(Sharecast News) - Wall Street trading began on a positive note on Wednesday as investors thumbed over the latest reading on inflation and earnings from the likes of Macy's and Blue Apron.
At 1530 GMT, the Dow Jones was 0.63% higher at 25,222.81, while the S&P 500 had picked up 0.70% at 2,741.37 as the Nasdaq traded 0.72% higher at 7,252.85.
The sharp fall in oil prices in the previous session led to a heightened focus on consumer prices, which came in line with expectations.
James Hughes, chief market analyst at AxiTrader, said: "Wall Street may have rallied hard in the wake of last night's close, but the market is finding no success in sustaining this upside with fears over the collapsing oil price once again being seen as key in driving sentiment."
"There are wider problems afoot, however - last night's US budget deficit grew even wider than had been expected, Japanese GDP missed expectations, interest rates are expected to continue rising and Europe faces a series of key political tests that could have a damaging impact on investment and in turn consumption."
The dollar gained 0.1773% against the pound as investors were also looking across the pond after UK Prime Minister Theresa May called a Cabinet meeting to try and secure ministerial support for a draft Brexit deal she has agreed with the EU.
The deal is understood to include plans for a solution to a hard border in Ireland by introducing a UK-wide customs backstop plan which would keep Britain in a customs union with the EU until a more permanent solution is agreed.
In corporate news, Snapchat parent Snap was down 1.94% after it said regulators are investigating allegations that it did not make proper disclosures to investors related to its IPO.
"While we do not have complete visibility into these investigations, our understanding is that the DOJ is likely focused on IPO disclosures relating to competition from Instagram," a Snap spokesman said in a statement.
Elsewhere, Macy's shares picked up 2.10% as the retailer raised its full-year forecasts after its third-quarter earnings beat estimates.
Blue Apron shares slipped 2.04% after announcing its intention to cut its workforce by 4%
Cisco is slated to report after the close.
On the data front, inflation in the US accelerated as expected last month, pushed higher by increased energy costs, but underlying price pressures were more modest than economists had anticipated.
According to the Bureau of Labor Statistics, consumer prices increased at a 0.3% month-on-month pace in the US during the month of October, pushing the annual rate of increase up to 2.5%.
Those increases were exactly as economists had anticipated.
In September, CPI had risen by 2.3% on the year, while versus September, energy prices jumped by 2.4%.
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