Traders work on the trading floor of the New York Stock Exchange.
New York Stock Exchange
Stock futures were flat overnight as Wall Street braced for an important inflation report.
linked to futures Dow Jones Industrial Average Added 10 points, while S&P 500 Index Futures and Nasdaq 100 Futures inches taller.
other busy earnings day Hours later ensued, with Airbnb and Twilio Every drop more than 10% poor forecast. Electric Vehicle Manufacturers . Rivian pop up 5% lower than expected loss.
The major averages closed lower in Tuesday’s regular session, with S&P 500 Index and Nasdaq Composite Index They fell by 0.46% and 0.63%, respectively. The Dow Jones Industrial Average fell 0.17%.
Traders continued to focus on the latest developments on the U.S. debt ceiling amid concerns that failure to reach a resolution by the June 1 deadline could lead to a default. President Biden held a key meeting with congressional leaders after the bell on Tuesday, but comments from leaders of both parties suggested little progress had been made.
Investors are bracing for Wednesday’s release of April’s consumer price index, a key inflation gauge that should provide more insight into whether the Federal Reserve’s rate hikes are easing sticky prices. Analysts polled by Dow Jones were calling for inflation to rise 0.4% month-on-month and 5% higher than a year ago.
“I think this will tell us that the path to normalization is not linear,” Adam Phillips of EP Wealth Advisors said in Wednesday’s data release.
Despite clear progress in fighting inflation from multi-decade highs, he doesn’t expect that number to change much.
“It’s not going to change our view on the Fed,” Phillips said. “Markets are likely to react as they have reacted to anything inflation-related lately, but when you take it seriously, I don’t think that necessarily changes the Fed’s calculations either.”
Earnings season continues on Wednesday with results from disney, Robles and Robin Hood.