Stock futures muted as investors await key inflation data

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U.S. equity futures hovered around equilibrium in pre-market trading on Thursday as Wall Street awaited a new CPI reading, which should offer fresh clues on the pace of Reserve monetary tightening. federal. In the previous session, major Wall Street benchmarks were lifted by an influx of strong corporate earnings.

Futures related to the S&P 500, Dow Jones Industrial Average and Nasdaq traded near the fixed line ahead of the open after indices closed in positive territory on Wednesday.

The Walt Disney Company (DIS), a component of the Dow Jones, released results for the first quarter of 2022 after the bell on Wednesday that significantly beat estimates. Better-than-expected growth for the entertainment giant’s streaming service Disney+ and a pick-up in theme park attendance sent shares up as much as 9% after the report. Uber (UBER) also released results after the market close, showing quarterly revenue that beat analysts’ forecasts and indicated that headwinds caused by the Omicron COVID push have eased.

In Wednesday’s main session, Chipotle Mexican Grill’s (CMG) was in the spotlight as shares surged after the fast-casual chain posted a quarterly pace of profits and saw margins rise, despite concerns over food price inflation and labor costs.

“Last year it was ‘tell me the story and how awesome it is’, while this year it’s ‘show me the money and show me you’re progressing. profitably – that you have cash flow,” Satori Fund founder and portfolio manager Dan Niles told Yahoo Finance Live.

After a surprise shift from the Federal Reserve on how aggressively it would tighten monetary conditions rattled stocks in January, investors found relief in strong earnings in recent weeks. Bank of America said in its latest update that S&P 500 earnings per share (EPS) beat consensus expectations of 6% so far for the last quarter and is heading for a growth rate well above 20. % on an annual basis.

But as earnings season draws to a close, investors will turn to macro concerns. On Thursday, the focus will be on January’s consumer price index (CPI), which is expected to show another 39-year high inflation rate.

“We think the focus is returning to the macro side of the ledger this week,” Stuart Kaiser, head of equity derivatives research at UBS, told Yahoo Finance Live on Tuesday, adding that the European Central Bank and the Bank of England tighten their monetary policy. with the Fed and a series of high inflation prints are expected in the coming months. “When we put it all together, we don’t think the bumpy ride is over.”

The benchmark 10-year yield fell back on Wednesday from its highest level since November 2019 at 1.92% after hitting 1.96%.

“Even though we see the yield curve starting to flatten, we’re watching the 10-year and the CPI figure very closely tomorrow,” said Eva Teens, chief operating officer and chief investment strategist at ‘ERShares, at Yahoo Finance Live, adding the three factors to watch in the data are costs associated with labor, food prices and energy.

“The 10-year-old is approaching 2%,” Teens said. “Once that happens, it will trigger a psychological level and more anxiety in the markets.”

7:00 a.m. ET: Contracts on major Wall Street benchmarks remain unchanged ahead of CPI print

Here are the top moves in futures trading ahead of Thursday’s open

  • S&P 500 Futures Contracts (ES=F): -72.50 points (-0.16%), to 4,570.50

  • Dow futures (JM=F): +32.00 points (+0.09%), to 35,673.00

  • Nasdaq futures contracts (NQ=F): -43.75 points (-0.29%) to 14,994.50

  • Raw (CL=F): +$0.96 (+1.07%) at $90.62 per barrel

  • Gold (CG=F): -$3.00 (-0.16%) at $1,833.60 per ounce

  • 10-year cash flow (^TNX): -0.00 bps for a yield of 1.9290%

6:00 p.m. ET Wednesday: Stock futures rise slightly ahead of key inflation data

Here’s how the key indices fared on Wednesday after the market:

  • S&P 500 Futures Contracts (ES=F): +4.00 points (+0.09%), to 4,581.75

  • Dow futures (JM=F): +78.00 points (+0.22%), to 35,719.00

  • Nasdaq futures contracts (NQ=F): +15.50 points (+0.10%) to 15,038.25

  • Raw (CL=F): +$0.31 (+0.35%) at $89.97 per barrel

  • Gold (CG=F): +$2.60 (+0.14%) at $1,833.60 per ounce

  • 10-year cash flow (^TNX): -2.5 bps for a yield of 1.9290%

A trader works on the floor of the New York Stock Exchange at the closing bell on January 14, 2022, in New York, NY. (Photo by TIMOTHY A. CLARY/AFP) (Photo by TIMOTHY A. CLARY/AFP via Getty Images)

Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc

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