Stock futures are little changed following hot inflation report

Stock futures are little changed following hot inflation report


Stock futures were slightly higher Wednesday evening after the latest CPI data showed inflation is still running hot.

Futures tied to the Dow Jones Industrial Average added 17 points, or 0.05. S&P 500 futures inched higher by 0.03%. Nasdaq 100 futures were down by 0.01%.

Disney shares fell about 2% after hours despite strong earnings for its most recent quarter. The company said Covid is still weighing on its theme parks in Asia.

In regular trading, the Dow fell 326 points, or 1.02%. The S&P 500 slipped 1.65% and the Nasdaq Composite dropped 3.18%.

The moves came as investors assessed the latest inflation data, which showed consumer prices in April jumped 8.3%, which was higher than expected and still running close to their 40-year high of 8.5%. Analysts are mixed on whether the data suggests inflation has hit a peak.

While the market briefly turned positive at one point in the session, the S&P 500 at one point touched a new 52-week low and eventually closed at its lowest level of the year. The S&P 500 is more than 18% off its high and down more than 17% since the start of the year.

Stock picks and investing trends from CNBC Pro:

Still, market bull Tom Lee of Fundstrat remains bullish on stocks. He said if the market finds its footing “we’re in a world of double digit expected returns.”

“This week is interesting because the stock market declines have accelerated downwards, so the waterfall is accelerating but things that normally would corroborate a waterfall decline like yields or the VIX have not been,” Lee told CNBC’s “Closing Bell: Overtime.” “The bond market’s actually been pretty stable even in the face of a hot CPI and the VIX actually has been falling.”

He noted that of the 16 times since 1940 that the market has declined 16% in a four-month period, it was higher six months later in 12 of those events.

SoftBank is set to report earnings on Thursday morning before the bell. Affirm, Poshmark and Toast are on deck after the bell.

In economic data, investors will be looking out for the latest on jobless claims, which will be released at 8:30. They’re also looking forward to fresh data on the producer price index, which measures prices at the wholesale level.



Source

Daniel Loeb’s next task as his hedge fund turns 30: Avoiding becoming ‘AI roadkill’
Finance

Daniel Loeb’s next task as his hedge fund turns 30: Avoiding becoming ‘AI roadkill’

Daniel Loeb has found himself a new goal as his hedge fund Third Point entered its milestone 30th year: To be a true winner in the red-hot artificial intelligence boom and not run over by it. “Change is happening at an ever accelerating and increasing rate and it’s just going to require us to continue […]

Read More
Stocks making the biggest moves midday: Costco, Palantir, Gap, Ulta Beauty and more
Finance

Stocks making the biggest moves midday: Costco, Palantir, Gap, Ulta Beauty and more

Check out the companies making headlines in midday trading: Costco — The wholesaler gained more than 3% on fiscal third-quarter results that surpassed analysts’ estimates, while sales jumped 8% from the same period a year ago. Ulta Beauty — Shares of the beauty retailer skyrocketed nearly 13% to hit a 52-week high after the company […]

Read More
Stocks making the biggest moves premarket: Ulta Beauty, Airbnb, Gap, American Eagle and more
Finance

Stocks making the biggest moves premarket: Ulta Beauty, Airbnb, Gap, American Eagle and more

Check out the companies making headlines before the bell: UiPath — Shares surged 12% after the automation software company posted first-quarter operating income and revenue figures that exceeded FactSet estimates. UiPath also raised its full-year revenue guidance and sees its current-quarter revenue coming in between $345 million and $350 million, while analysts polled by FactSet […]

Read More