Stock futures dip slightly ahead of key inflation reading
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Traders in New York City work at the New York Stock Exchange (NYSE), April 28th, 2022.
Brendan McDermid | Reuters
Overnight trading on Tuesday saw stock futures drop ahead of an important inflation reading.
The Dow Jones Industrial Average futures lost about 35 points or 0.1%. S&P 500 futures eased 0.1% and Nasdaq 100 futures ticked down 0.1%.
These moves follow the Dow’s fourth consecutive Tuesday fall in volatile trading sessions that alternate between losses and gains. The S&P 500 ticked up 0.25% and the Nasdaq Composite gained about 1%.
Technology companies with mega-caps, who have been struggling in recent weeks led Tuesday’s gains. Apple and Microsoft each gained more than 1%.
Investors await the publication of April’s consumer price indexWednesday morning, for the latest inflation temperature monitoring. Rising prices are a concern as the Federal Reserve increases interest rates and reduces its reserves to deal with inflation.
Brian Belski (BMO Capital Markets chief investment strategist) said Tuesday that “we are seeing signs” of inflation peaking on a monthly basis. Are we likely to witness some surprise number? It could help get things started.
According to the consensus Dow Jones estimate, economists anticipate that the CPI will rise by 0.2% over the month before and 8.1% annually. This compares to March’s 8.5% annual pace.
Also, analysts are looking at earnings reports from Walt Disney Company and Toyota Motors.
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