US pre-open: Futures trade slightly higher ahead of CPI reading
By Iain Gilbert
Date: Wednesday 12 Jan 2022
(Sharecast News) - Wall Street futures had stocks opening slightly higher ahead of the bell on Wednesday as market participants held out for an important inflation report later in the day.
As of 1155 GMT, Dow Jones futures were up 0.12%, while S&P 500 and Nasdaq-100 futures had the indices opening 0.11% and 0.19% firmer, respectively.
The Dow closed 183.15 points higher following Federal Reserve chairman Jerome Powell's Senate testimony on Tuesday, reversing losses recorded in the previous session.
Powell told the Senate Banking Committee that he anticipates interest rate increases in 2022, along with the end of the central bank's monthly bond-buying programme in March and a reduction in asset holdings, moves he believes will likely be required to manage inflation amid the economy's recovery from the Covid-19 pandemic.
Wednesday's primary focus will be the December reading of the Bureau of Labor Statistics' consumer price index at 1330 GMT, with economists expecting to see CPI rising 0.4% on November and 7% year-on-year - the largest jump seen since 1982. Some economists also believe that inflation may well show signs of peaking.
Also on the macro front, the Mortgage Bankers Association's weekly mortgage applications report will be published at 1200 GMT.
The yield on the benchmark 10-year Treasury note slipped to 1.739% before the open after topping 1.8% earlier in the week.
No major corporate earnings were slated for release on Wednesday.
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