By Victor Reklaitis, MarketWatch
Analyst: 'Today's U.S. CPI inflation report has taken on an
importance all of its own in the wake of the recently strong wages
numbers'
U.S. stock futures pointed to a gain at the open, setting the
Dow on track for its fourth up day in a row, as global equity
markets recover from their selloff earlier this month.
Investors are bracing for a reading on inflation that's due
before the open. The report has taken on heightened significance as
the recent market drop has been blamed in large part on inflation
concerns.
Check out:Why this investment pro thinks inflation fears are
overblown
(http://www.marketwatch.com/story/why-this-investment-pro-thinks-wall-streets-inflation-fears-are-overblown-2018-02-13)
And read:Higher wages spook Wall Street, but fresh fears of
inflation look overdone
(http://www.marketwatch.com/story/inflation-fears-haunt-wall-street-again-but-investors-might-just-be-having-a-bad-dream-2018-02-10)
What are the main benchmarks doing?
Dow Jones Industrial Average futures rose by 121 points, or
0.5%, to 24,747, while S&P 500 futures added 11.30 points, or
0.4%, to 2,673. Nasdaq-100 futures tacked on 29.25 points, or 0.5%,
to 6,589.75.
On Tuesday, the Dow , S&P 500 and Nasdaq Composite all
scored modest gains
(http://www.marketwatch.com/story/third-straight-win-for-us-stocks-in-doubt-as-dow-futures-tumble-more-than-100-points-2018-02-13),
leaving each gauge 7% below its January record close.
What could help drive markets?
The three indexes have rallied for three straight sessions,
recovering from a tumble this month that strategists pinned in
large part on rising bond yields amid signs of inflation. The
higher yields lured money out of equities, which also looked
overdue for a drop after a relentless runup.
Read:Here's a 10-step plan the stock market must complete to get
back on track
(http://www.marketwatch.com/story/heres-a-10-step-plan-the-stock-market-must-complete-to-get-back-on-track-2018-02-13)
And see:This market selloff was overdue, but now it looks
overdone
(http://www.marketwatch.com/story/this-market-selloff-was-overdue-but-now-it-looks-overdone-strategists-say-2018-02-10)
The January report on inflation is slated to hit at 8:30 a.m.
Eastern Time, with economists polled by MarketWatch forecasting a
0.4% rise for the consumer price index, along with a 0.2% rise for
the core CPI.
What are strategists saying?
"Today's U.S. CPI inflation report has taken on an importance
all of its own in the wake of the recently strong wages numbers,
never mind the fact that the Fed doesn't even use CPI to target
inflation," said Michael Hewson, chief market analyst at CMC
Markets UK, in a note.
"Nonetheless, this renewed focus on inflation, not only in the
U.S. but more globally, has raised concerns that central banks may
well be behind the curve when it comes to assessing the outlook for
the next few months."
Don't miss:Why Valentine's Day may represent the next big test
for stocks
(http://www.marketwatch.com/story/weeks-inflation-data-is-seen-as-the-markets-next-big-tests-2018-02-12)
What other economic reports are due?
On the docket alongside the inflation report is a release on
January retail sales, scheduled for 8:30 a.m. Eastern, with 0.2%
growth expected. Then a December reading on business inventories is
scheduled to land at 10 a.m. Eastern.
Check out:MarketWatch's Economic Calendar
(http://www.marketwatch.com/economy-politics/calendars/economic)
No Federal Reserve official is scheduled to give a speech.
What are other assets doing?
European stocks
(http://www.marketwatch.com/story/european-stocks-perk-up-after-german-growth-data-2018-02-14)mostly
gained, while Asian markets finished mixed
(http://www.marketwatch.com/story/asian-markets-largely-quiet-ahead-of-lunar-new-year-holiday-2018-02-13).
Gold futures edged higher, oil futures
(http://www.marketwatch.com/story/oil-prices-weighed-by-rise-in-us-oil-output-inventories-2018-02-14)lost
ground, and the ICE U.S. Dollar Index
(http://www.marketwatch.com/story/dollars-descent-carries-on-as-us-inflation-data-looms-2018-02-14)was
little changed.
Which stocks look like key movers?
Fossil Group Inc.'s stock (FOSL)surged 79% in premarket action
after the watch seller late Tuesday posted better-than-expected
earnings
(http://www.marketwatch.com/story/fossil-group-explodes-more-than-50-higher-after-earnings-2018-02-13)
and KeyBanc analysts hiked their price target
(http://www.marketwatch.com/story/fossil-shares-soar-70-as-keybanc-raises-price-target-to-25-vs-15-2018-02-14).
Chipotle Mexican Grill Inc.'s shares (CMG)soared 12% premarket
after the burrito chain late Tuesday named a new CEO
(http://www.marketwatch.com/story/chipotle-chooses-taco-bell-ceo-as-new-leader-stock-soars-2018-02-13):
Brian Niccol, previously the CEO for Yum Brands Inc.'s (YUM)Taco
Bell business.
Shares in Hilton Worldwide Holdings Inc.(HLT) , Dr Pepper
Snapple Group Inc.(DPS)and Molson Coors Brewing Co.(TAP)are likely
to see active trading as they're among the companies expected to
post earnings before the open.
(END) Dow Jones Newswires
February 14, 2018 07:11 ET (12:11 GMT)
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