Wall Street looks set to open lower Wednesday, after snapping a three-day losing streak, ahead of a key reading of January retail sales before the start of trading.
U.S. equity futures edged lower Wednesday, after snapping a three-day losing streak last night on easing tensions between Russian and Ukraine, as investors resume their inflation and rate focus ahead of a key reading of retail sales prior to the start of trading.
The Federal Reserve’s hawkish shift on inflation, which has triggered forecasts of as many as five rate hikes between now and the end of the year, could be further cemented later today with the release of minutes from its January policy meeting, although bets on a 50 basis point move in March are still substantial, with a 58% probability based on the CME Group’s FedWatch tool.
Outside influences are also significant, with Britain recording the fastest inflation since 1992 last month, at 5.5%, a tally that all but ensures that the Bank of England will raise rates again — for the third time since December — when it meets in London next month.
Nvidia, Viacom/Paramount, Airbnb, Retail Sales and Stock Markets – Five Things You Must Know
Still, easing tensions in and around the Crimea, where Russia troops have reportedly pulled back — although President Joe Biden has stressed there has been no verification of that from Moscow — has added a degree of cautious optimism in markets Wednesday, with European stocks inching into positive territory and the U.S. dollar index, a safe-haven favorite, slipping lower against its global peers.
Ahead of the open, investors will also parse details of the January retail sales release, which is likely to indicate a significant jump in consumer spending to start the year, adding even more upward pressure on prices and the Fed’s view on near-term inflation.
Car sales are set to provide the strongest boost to headline retail sales, which are forecast to rise 1.8% from last year following the shock 1.9% slide recorded in December.
On Wall Street, futures tied to the Dow Jones Industrial Average are indicating an 80 point opening bell dip while those linked to the S&P 500 are priced for a 12 point retreat.
Nasdaq Composite futures are indicating a 40 point dip from last’s night close as 10-year Treasury note yields hold at 2.036% in overnight trading.
ViacomCBS VIAC shares were active in pre-market trading, falling 9.7% after the network and streaming media group posted weaker-than-expected fourth quarter earnings and unveiled plans to change its name to Paramount.
Kraft Heinz (KHC) – Get Kraft Heinz Company Report rose 1.3% following better-than-expected fourth quarter earnings as the packaged food giant was able to offset input costs with across-the-board price increases.
Airbnb (ABNB) – Get Airbnb, Inc. Class A Report shares gained 3.6% after the home rental group posted stronger-than-expected fourth earnings as bookings and prices improved in the waning weeks of the pandemic.
Nvidia (NVDA) – Get NVIDIA Corporation Report shares are also likely to be in focus today ahead of the chipmaker’s fourth quarter earnings after the closing bell following the collapse of its planned $40 takeover of Arm Holdings earlier this month.
In other markets, global oil prices resumed their recent march higher after data from the American Petroleum Institute showed a 2 million decline in domestic crude stockpiles, adding to concerns that the Energy Department will show a slump back below 2018 levels, despite President Joe Biden’s tapping of the Strategic Petroleum Reserve, later in the session.
Brent crude contracts for April delivery, the global pricing benchmark, were last seen $1.21 higher on the session at $94.49 per barrel.
WTI crude futures for March delivery, which are tightly linked to U.S. gasoline prices, were marked $1.08 higher from their Tuesday close and changing hands at $93.15 per barrel.
In overseas markets, the region-wide Stoxx 600 in Europe was marked 0.01% higher by mid-day trading in Frankfurt while the MSCI ex-Japan index rode last night’s gains on Wall Street to a 1.28% advance heading into the close of trading.
