Stock futures trade tentatively ahead of inflation data

Investors should buy on worry: Scott Martin

Kingsview Asset Management CIO Scott Martin and Banrion Capital Management founder and president Shana Sissel discuss the market’s strong earnings and the Federal Reserve’s interest rate hikes.

U.S. equity futures traded mixed ahead of the latest figures on inflation.

The major futures indexes suggest a gain of 0.1% on the Dow and a decline of 0.4% on the Nasdaq when trading begins on Wall Street.

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Traders will get another update Thursday on rising prices when the Labor Department releases its report on inflation for January. 

The consumer price index is expected to rise 0.5% month-over-month in December, slightly trailing December’s 0.6% gain. On a year-over-year basis watch for prices to jump 7.3%. That would be the highest inflation level in almost 40 years, and up from 7.0% in December. If you factor out volatile food and energy costs, the core consumer price index is also expected to rise 0.5% for the month. On an annual basis, core CPI is forecast to jump 5.9% in January. 

INFLATION PROBABLY ACCELERATED IN JANUARY TO ANOTHER 40-YEAR HIGH

At the same time the Labor Department is out with its tally of new claims for unemployment benefits for last week. Expectations are for 230,000, down from 238,000 the previous week and the third straight weekly decline. Continuing claims, which track the total number of unemployed workers collecting benefits, are anticipated to fall by 13,000 to 1.615 million, still below pre-pandemic levels.

Traders will also examine earnings from Coca-Cola, PepsiCo, Philip Morris International, Kellogg, Coach and Kate Spade parent Tapestry and social networking service Twitter among others. 

In the afternoon watch for results from real estate marketplace Zillow and travel shopping firm Expedia Group.

In Europe, London's FTSE added 0.1%, Germany's DAX rose 0.4% and France's CAC gained 0.2%.

In Asia, Japan's benchmark Nikkei 225 rose 0.4%, Hong Kong's Hang Seng added 0.4%, while China's Shanghai Composite gained 0.2%.

TickerSecurityLastChangeChange %
I:DJIDOW JONES AVERAGES35768.06+305.28+0.86%
SP500S&P 5004587.18+65.64+1.45%
I:COMPNASDAQ COMPOSITE INDEX14490.372942+295.92+2.08%

Technology companies led Wednesday's broad rally on Wall Street. The S&P 500 rose 1.5% to 4,587.18. The Dow Jones Industrial Average gained 0.9% to 35,768.06 and the tech-heavy Nasdaq composite rose 2.1%, to 14,490.37.

More than 85% of stocks in the S&P 500 gained ground, with technology and communications stocks powering much of the gains. Microsoft rose 2.2% and Google's parent company, Alphabet, rose 1.6%.

The yield on the 10-year Treasury fell to 1.92% on Thursday.

Bitcoin remained around $43,000.

TickerSecurityLastChangeChange %
DISTHE WALT DISNEY CO.147.23+4.75+3.33%
UBERUBER TECHNOLOGIES INC.40.19+1.85+4.83%

In after-the-bell earnings reports, the Walt Disney Co. and Uber rose after each reported results that topped Wall Street’s estimates.

Drugstore chain CVS fell 5.4% for the biggest decline in the S&P 500 after giving investors a discouraging earnings forecast.

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In energy trading, benchmark U.S. crude added 25 cents to $89.42 a barrel in electronic trading on the New York Mercantile Exchange. It rose 30 cents to $89.66 per barrel. Brent crude, the international standard, gained 25 cents to $91.19 a barrel.

The Associated Press contributed to this report.

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