Traders work on the floor of the New York Stock Exchange during morning trading in New York City, April 29, 2024.
Michael M. Santiago | Getty Images
Stock futures were little changed as Wall Street braced for April’s consumer price index.
Futures tied to the Dow Jones Industrial Average added 5 points, while S&P 500 futures and Nasdaq 100 futures hovered near the flatline.
Boot Barn dropped 7% on disappointing guidance for the full year, while Nextracker gained 8% on better-than-expected revenues.
The overnight moves followed a winning session that pushed up the Nasdaq Composite 0.75% to a fresh closing record. The S&P 500 added 0.48%, bringing broad index about 0.1% off of its record closing high. The Dow Jones Industrial Average gained 0.32%.
Investors await Wednesday’s key inflation report for more insight into the state of sticky inflation. Economists polled by Dow Jones expect the consumer price index to show a 0.4% monthly gain, or a 0.3% increase excluding food and energy. Economists expect a 3.4% year-over-year gain for headline CPI, following a 3.5% rise in March.
Stubborn prices have remained a key concern for markets in recent weeks, spurring fears that the Federal Reserve may delay its rate-cutting cycle. Tuesday’s producer price index for April contributed to that narrative, showing a 0.5% gain in wholesale prices, above the 0.3% estimate from Dow Jones.
Signs that inflation is easing in other respects – including housing and auto insurance – could be a good omen for markets from here and the Fed’s policy, according to Fundstrat Global Advisors’ Tom Lee.
“It’s going to make it clear to markets that … inflation is now normalizing, the economy is in good shape, and rates are so restrictive the Fed actually needs to cut rates,” the head of research said on CNBC’s “Closing Bell” on Tuesday. “That’s actually quite good for stocks. If it’s a pause, it’s good for stocks. If it’s a cut, I think it’s even better.”
Other economic report due out Wednesday include retail sales figures for April, May’s Empire State manufacturing survey and the housing market index.
The final stages of the first-quarter earnings season continues with results from Cisco Systems after the bell.
