Following the upward move seen over the course of the previous session, stocks may show a lack of direction in early trading on Wednesday. The major index futures are currently pointing to a roughly flat open for the markets, with the S&P 500 futures down by less than tenth of a percent.
Traders may be reluctant to make significant moves ahead of the release of the Federal Reserve’s preferred readings on consumer price inflation shortly after the start of trading.
The personal consumption expenditures (PCE) price index is expected to rise by 0.2 percent for the second straight month, while the annual rate of growth is expected to accelerate to 2.3 percent in October from 2.1 percent in September.
The core PCE price index, which excludes food and energy prices, is also expected to increase by 0.3 percent for the second straight month, while the annual rate of growth is expected to tick up to 2.8 percent in October from 2.7 percent in September.
The inflation data could impact the outlook for interest rates ahead of the Fed’s next monetary policy meeting in mid-December.
Ahead of the data, CME Group’s FedWatch Tool is indicating a 66.5 percent chance the Fed will lower rates by another 25 basis points next month and a 33.5 percent chance the central bank will leave rates unchanged.
The futures remained little changed even after the release of some key economic data before the start of trading, including a Labor Department report showing initial jobless claims unexpectedly edged lower in the week ended November 23rd.
The Commerce Department also released a report showing durable goods orders increased by less than expected in the month of October.
After turning in a mixed performance early in the session, the major U.S. stock indexes all moved to the upside over the course of the trading day on Tuesday. The Dow recovered from early weakness to end the day at another new record closing high.
The Dow fell by as much as 0.7 percent in early trading but ended the day up 123.74 points or 0.3 percent at 44,860.31. The S&P 500 also climbed 34.26 points or 0.6 percent to a record closing high of 6,021.63, while the Nasdaq rose 119.46 points or 0.6 percent to 19,174.30.
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Wednesday. Japan’s Nikkei 225 Index slid by 0.8 percent, while China’s Shanghai Composite Index jumped by 1.5 percent.
Meanwhile, the major European markets have all moved to the downside on the day. While the French CAC 40 Index has slumped by 0.9 percent, the German DAX Index is down by 0.3 percent and the U.K.’s FTSE 100 Index is down by 0.1 percent.
In commodities trading, crude oil futures are rising $0.31 to $69.08 a barrel after slipping $0.17 to $68.77 a barrel on Tuesday. Meanwhile, an ounce of gold is trading at $2,676.30, up $30 compared to the previous session’s close of $2,646.30. On Tuesday, gold inched up $3.70.
On the currency front, the U.S. dollar is trading at 151.35 yen compared to the 153.08 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is trading at $1.0549 compared to yesterday’s $1.0489.
Business News
U.S. Stocks May Lack Direction Ahead Of Inflation Data
2024-11-27 13:52:05
