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Stock futures wiped out early gains Wednesday, turning lower after an eagerly awaited consumer price index reading showed U.S. inflation slowed less than expected in April.
How are stock-index futures trading?
-
S&P 500 futures
ES00,
-1.08%
fell 23.75 points, or 0.7%, to 3,973. -
Dow Jones Industrial Average futures
YM00,
-0.73%
dropped 109 points, or 0.3%, to 31,978. -
Nasdaq 100 futures
NQ00,
-1.70%
shed 124 points, or 1% to 12,225.
On Tuesday, the Dow industrials
DJIA,
fell 0.3% to close at 32,160.74, a fourth straight day of losses that marked its largest four-day percentage decline since the stretch ending Oct. 29, 2020. The S&P 500
SPX,
snapped a three-day losing streak with a gain of 0.2%, while the Nasdaq Composite
COMP,
advanced 1%.
What’s driving markets?
Gains for stock-index futures were erased after data showed April consumer prices rose at an 8.3% annual pace in April, slowing from a more-than-40-year high of 8.6% in March. But it was above the 8.1% pace expected by economists surveyed by The Wall Street Journal and underscored that inflation continues to run at a torrid pace.
However, the so-called core rate of inflation, which omits food and energy, rose by a somewhat stronger 0.6%. Wall Street had forecast a 0.4% increase. The increase in the core rate over the past year also slowed to 6.2% from from a 40-year high of 6.5% in March.
Opinion: The Fed doesn’t deserve all of the blame for this inflation surge
The federal budget for April is due at 2 p.m. Eastern Time.
Some positive sentiment could also be fueled by reports that COVID cases were easing in Beijing and Shanghai, driving hopes for an easing of restrictions and pressure on the global economy. Optimism that that could relay to improved demand helped drive oil prices sharply higher.
Read: Ukrainians make gains in east, as country halts Russian gas at one hub
Separately, data showed China’s consumer-price index rose 2.1% in April from a year earlier, picking up from March’s 1.5% increase.
Treasury yields jumped after the data, with that of the 10-year note
TMUBMUSD10Y,
up 3.3 basis points to 3.032%
Big earnings news in focus after the close of markets will fall on The Walt Disney Co.
DIS,
whose shares rose 1% in premarket trade. Investors will be taking a close look at the entertainment giant’s streaming service in particular, after rival Netflix
NFLX,
reported slumping subscriber numbers last month.
Which companies are in focus?
-
Coinbase Global Inc.
COIN,
-12.60%
shares fell 14% in premarket trade as the crypto trading app reported worse-than-forecast revenue on declining volume. -
Switch Inc.
SWCH,
+3.15%
stock rose 8% on news that DigitalBridge Group Inc.
DBRG,
-6.02%
has offered to buy the technology group in a cash deal valued at $11 billion. -
Perrigo PLC
PRGO,
+0.37%
shares fell 4% in premarket trade after the personal self-care product maker swung to a first-quarter loss, missing estimates. -
Krispy Kreme Inc.
DNUT,
-2.32%
shares rose 2.4% in premarket trading after the doughnut seller reported forecast-beating profit and revenue and affirmed its full-year outlook.
How are other assets trading?
-
Oil futures surged, with the U.S. benchmark
CL00,
+2.69% CLM22,
+2.69%
up $4 , or 4%, to $103.79 a barrel, with Brent crude
undefinedBRNN22,
+2.39%
up nearly $4, or 3.8%, to $106.39 a barrel. -
Gold futures
GC00,
-0.32%
rose, with gold for June delivery
GCM22,
-0.32%
up 0.5% to $1,848.90 an ounce. -
The Stoxx Europe 600
SXXP,
+0.25%
rose 1.3%, while London’s FTSE 100
UKX,
+0.23%
rose 0.9%. -
The Shanghai Composite
SHCOMP,
+0.75%
rose 0.7%, while the Hang Seng Index
HSI,
+0.97%
gained 0.9% and Japan’s Nikkei 225
NIK,
+0.18%
was up 0.1%.
