MARKET SNAPSHOT: Stock Futures Edge Lower Ahead Of Inflation Data
11 January 2019 - 11:59PM
Dow Jones News
By Chris Matthews, MarketWatch
Bulls look to extend winning streak to 6 days
Stock-index futures pointed to a slightly lower start for Wall
Street as investors awaited December inflation data, and as bulls
look to avoid snapping the major benchmarks' five-day winning
streak, after Thursday's gains helped pull the Dow Jones Industrial
Average and the S&P 500 out of correction territory.
How did major benchmarks fare?
Futures for the Dow Jones Industrial Average fell 14 points, or
0.1% to 23,936, while those for the S&P 500 index fell by 5.1
points, or 0.2% to 2,588. Nasdaq-100 futures fell by 18.25 points,
or 0.3%, to 6,605.
On Thursday, the Dow Jones Industrial Average rose 122.80
points, or 0.5%, to 24,001.92, and the S&P 500 advanced 11.68
points, or 0.5%, to 2,596.64. The Nasdaq Composite Index added
28.99 points, or 0.4%, to 6,986.07.
Need to Know:Here's what might stock the stock market's
post-December bounce
(http://www.marketwatch.com/story/heres-what-might-stop-the-stock-markets-post-december-bounce-2019-01-11)
Both the Dow and the S&P finished the day up more than 10%
from their December lows, marking their exit from correction
territory, or when an asset drops 10% from its recent peak.
Read:The stock market just got off to its best start in 13 years
(http://www.marketwatch.com/story/the-stock-market-just-got-off-to-its-best-start-in-13-years-2019-01-10)
What's driving the market?
Investors have taken solace in speeches by Federal Reserve
officials in recent weeks, as they have continued to spread the
message that the central bank will be cautious in its approach to
raising interest rates this year.
Fed Chairman Jerome Powell reinforced that message Thursday
during a during a discussion at the Economic Club of Washington
stressing that the central bank will be "flexible" and "patient" on
monetary policy as inflation is "under control."
Friday morning, investors will get a look at the latest
inflation numbers, when the Labor Department releases its latest
reading of the consumer-price index, a key reading of inflation.
Though not the Fed's preferred inflation gauge, the CPI release
will give markets an updated picture of how quickly prices are
rising--with higher inflation a potential driver of lower corporate
profit margins and more aggressive Fed rate increases.
Investors will also be digesting incrementally good news on the
U.S.-China trade front, after U.S. Treasury Secretary Steven
Mnuchin told reporters Thursday night that Vice Premier Liu He, the
most senior economic policy advisor to President Xi Jinping, would
travel to Washington later in January to continue trade
negotiations, talks that have been seen by markets as gaining
momentum this week.
Meanwhile, the partial U.S. government shutdown entered its 21st
day, tying the record for the longest in history. While markets
have thus far shrugged off the drama in Washington, hundreds of
thousands of federal workers will not receive paychecks this week,
and economists warn that the economic effects of the shutdown could
grow significant as the standoff drags on.
What are the analysts saying?
"Stocks are loving that central bank policy appears to be in an
ultra-dovish mode," wrote Edward Moya, chief market strategist at
Oanda, in a note. "Inflation is low and under control and the main
catalyst for the Fed's ability to be patient. If we see softer
prints, we could see yields drop and stocks continue their
rally."
(END) Dow Jones Newswires
January 11, 2019 07:44 ET (12:44 GMT)
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