The Fitz-Gerald Group principal Keith Fitz-Gerald, Simpler Trading director of ops Danielle Shay and Harris Financial Group managing partner Jamie Cox discuss CPI expectations on ‘Making Money.’
U.S. equity futures were trading cautiously higher ahead of the release of a key inflation report.
The major futures indexes suggested a gain of 0.4% when trading begins on Wall Street.
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Traders will be concentrating on reports on retail prices and consumer sentiment.
The Bureau of Labor Statistics is expected to say the consumer price index rose 0.7% month-over-month in November, below October’s 0.9% increase. On a year-over-year basis watch for prices to jump 6.8%. That would be the highest in more than 39 years and up from 6.2% in October.
If you factor out volatile food and energy costs, the core consumer price index likely rose 0.5% last month, trailing October’s 0.6% increase. On an annual basis, core CPI is forecast to jump 4.9% in November.
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Also, the University of Michigan releases its preliminary index of consumer sentiment for December. The Refinitiv estimate is 67.1, down from November’s final reading of 67.4 and would mark another 10-year low as consumers continue to fret over the rapid rise in inflation.
Fed officials, due to meet next week, have said plans to wind down bond purchases and other stimulus measures that are boosting stock prices might be accelerated if needed to cool inflation, which hit a 30-year high in October.
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In Europe, London’s FTSE was off 0.1%, Germany’s DAX declined 0.2% and France’s CAC fell 0.3%.
In Asia, the Nikkei 225 in Tokyo shed 1%, the Hang Seng in Hong Kong retreated 1.1% and China’s Shanghai Composite Index lost 0.2%.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 35754.69 | -0.06 | -0.00% |
| SP500 | S&P 500 | 4667.45 | -33.76 | -0.72% |
| I:COMP | NASDAQ COMPOSITE INDEX | 15517.369829 | -269.62 | -1.71% |
Wall Street’s benchmark S&P 500 index fell 0.7% to 4,667.45, after three days of gains. More than three-quarters of companies in the index closed lower. The Dow Jones Industrial Average slipped less than 1 point to 35,754.69. The Nasdaq lost 1.7% to 15,517.37.
Technology stocks and a mix of retailers and other companies that rely on direct consumer spending weighed the most on the S&P 500. Chipmaker Nvidia fell 3.4%, while Tesla slid 6.1% for the biggest drop in the index.
Travel-related companies slipped after spending the last few days gaining ground. Carnival fell 1.7% and United Airlines fell 1.8%.
Health-related stocks rose. Pfizer, which is touting the potential benefits of a vaccine booster against the omicron variant, rose 1.3%.
Shares of Oracle jumped 10% after-hours after forecasting current-quarter profit and revenue above market estimates on Thursday. Second quarter results were helped by higher tech spending from businesses looking to support hybrid work.
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In energy markets, benchmark U.S. crude added 39 cents to $71.34 per barrel in electronic trading on the New York Mercantile Exchange. The contract fell $1.42 on Thursday to $70.94. Brent crude, the price basis for international oils, gained 31 cents to $74.73 per barrel in London. It lost $1.40 the previous session to $74.42.
The Associated Press contributed to this report.