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U.S. stock futures were inching higher on Wednesday, but the market remained on edge ahead of monthly consumer price inflation data and quarterly results from several big Wall Street banks that could set the tone for the fourth-quarter earnings season.
The Bureau of Labor Statistics is slated to release the December CPI report at 8.30 a.m. Eastern Time. Economists expect inflation to have ticked up to 2.8%, per data from FactSet, marking another month without progress toward the Federal Reserve’s 2% target.
“US disinflation has plateaued, and this is worrying for investors… If we get an upside surprise in today’s CPI report, then it could boost fears that rising inflation will wreak havoc on markets in 2025,” Kathleen Brooks, research director for the online broker XTB, said.
Bank earnings could also determine the direction in which the market goes. JPMorgan Chase, Wells Fargo, Citigroup, and Goldman Sachs are all set to post their fourth-quarter results, with analysts predicting far higher profits thanks to solid consumer spending, higher stock prices and trading activity, and a pick-up in dealmaking. Financial giant BlackRock is also posting results today.
Stocks looked set to tick up Wednesday, after a bumpy previous session. Futures tracking the Dow Jones Industrial Average climbed 52 points, or 0.1%. S&P 500 futures were also up 0.1%, while contracts tied to the tech-heavy Nasdaq 100 rose 0.2%.
Bond yields remained elevated despite Tuesday’s cooler-than-expected producer price inflation reading. The yield on the 10-year U.S. Treasury note was 4.785%, and the yield on the 2-year note was 4.369%.
