Stock futures were on almost the same level Monday night, with a close eye on a forthcoming inflation report scheduled to be released before the bell on Tuesday.
The Dow Jones Industrial Average added a mere 4 points, trading nearly flat. Meanwhile, S&P 500 futures edged up by 0.05%, and Nasdaq 100 futures increased by close to 0.1%.
These movements come as investors prepare for the October consumer price index reading set to be released Tuesday morning. The report’s insights into inflation trends will inform expectations on potential adjustments to interest rates by the Federal Reserve.
Economists polled by Dow Jones anticipate a 0.1% increase in the index from the prior month, and a 3.3% increase on an annualized basis. Excluding more volatile food and energy prices, the core index is projected to rise by 0.3% month over month and 4.1% year over year.
“A hot CPI report may question investors’ belief the Fed is done raising rates,” said Bill Merz, head of capital market research at U.S. Bank Asset Management. Alternatively, “a figure coming in lower than expected could solidify those expectations for now.”
Investors had a mixed start to the week for the three major indexes on Monday as they geared up for the report. The S&P 500 and Nasdaq Composite finished down by about 0.1% and 0.2%, respectively, while the Dow posted a gain of nearly 0.2%.
In addition to the inflation report, investors will also be watching for small business data in the morning and for remarks from a slate of Fed officials throughout the day. Traders will also be keeping an eye on Home Depot’s earnings report before the bell.
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