Stock futures have changed little after Wednesday’s session as Wall Street awaits bank earnings

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Stock futures were little changed Thursday morning as traders look ahead to gains from major US banks.

The Dow Jones Industrial Average futures are down 11 points, or 0.04%. S&P 500 futures were fractionally lower and Nasdaq 100 futures were down 0.13%.

Shares fell during Wednesday’s session after inflation data came higher than expected in June, reaching its highest level since 1981 and fueling fears that the Federal Reserve will have to raise interest rates more aggressively in the coming months to mitigate price increases.

The consumer price index rose 9.1% year-on-year in June, ahead of economists’ estimates of an 8.8% year-on-year increase. The core CPI, excluding volatile food and energy prices, was 5.9%, also higher than the estimate of 5.7%.

In addition, the Beige Book, released by the Fed on Wednesday, highlighted concerns about an imminent recession amid high inflation.

The CPI report also impacted government bonds, pushing 2-year government bond yields up nine basis points to about 3.138%, while 10-year government bond yields fell about 4 basis points to 2.919. A reversal of the two is a popular signal of a recession.

When the Fed says, “everything is on the table, suddenly you have to start setting prices in a recession,” Dan Nathan, director of RiskReversal Advisors, said during CNBC’s “Fast Money.”

Earnings season continues on Thursday and JPMorgan Chase and Morgan Stanley will report before the bell on Thursday.

Weekly unemployment claims and the June Producer Price Index report, which measures prices paid to producers of goods and services, will also be released Thursday. Both reports will provide more insight into the economy.



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