US pre-open: Futures mixed ahead of CPI reading
By Iain Gilbert
Date: Wednesday 11 Dec 2024
(Sharecast News) - Wall Street futures were pointing to a mixed open ahead of the bell on Wednesday as investors patiently await the publication of last month's all-important CPI reading.
As of 1245 GMT, Dow Jones futures were down 0.10%, while S&P 500 and Nasdaq-100 futures had the indices opening 0.07% and 0.14% weaker, respectively.
The Dow closed 154.10 points lower on Tuesday, extending losses recorded in the previous session.
Wednesday's primary focus will be November's consumer price index at 1330 GMT, with economists expecting to see a 0.3% month-on-month increase and 2.7% annualised growth in headline CPI.
Today's CPI reading, as well as tomorrow's producer price index, will be the last two pieces of major economic data ahead of the Federal Reserve's two-day monetary policy meeting next week, with most investors currently expecting the central bank to lower its benchmark overnight interest rate by 0.25%.
Trade Nation's David Morrison said: "Have US equities already topped for this year, or will they experience a resumption of the rally into the New Year? Much could depend on today's inflation update and how that plays into next week's interest rate decision from the Federal Reserve's FOMC.
"By every measure, inflation is still above the Fed's 2% target. But worse than that, all inflation measures have lost their downside momentum. That's not to say that inflation is about to take off to the upside again, just that it makes it harder for the Fed to justify further cuts. That, in turn, removes a significant tailwind to equity markets."
Morrison also noted that with major indices still near record highs, and given a lack of a significant pullback since the summer, that it would possibly makes sense to trim some exposure. However, as things stand, most investors seemed to be positioned for a positive run into the holidays.
Elsewhere on the macro front, US mortgage applications rose by 5.4% in the week ended 6 December, according to the Mortgage Bankers Association of America, up from the prior week's 2.8% increase. Applications to refinance a mortgage surged 30% week-on-week, while applications to purchase a home slipped 4%.
In the corporate space, Adobe will post its latest set of quarterly results after the close.
Reporting by Iain Gilbert at Sharecast.com
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