The U.S. index futures are pointing to a sharply higher opening on Thursday, as traders react to the October consumer price inflation report — key data that would have a say on the Federal Reserve’s December monetary policy meeting.
On Wednesday, the major averages wilted amid profit-taking following a three-session rally. Earnings reports and general apprehensions amid the developments related to cryptocurrency exchange FTX’s travails weighed down on the markets.
The sell-off was across the board, but it was particularly severe in the technology and consumer discretionary spaces.
| Index | Performance (+/-) | Value | |
|---|---|---|---|
| Nasdaq Composite | -2.48% | 10,353.17 | |
| S&P 500 Index | -2.08% | 3,748.57 | |
| Dow Industrials | -1.95% | 32,513.94 |
Here’s a peek into index futures trading:
| Index | Performance (+/-) | |
|---|---|---|
| Nasdaq 100 Futures | +3.39% | |
| S&P 500 Futures | +2.67% | |
| Dow Futures | +2.33% | |
| R2K Futures | +2.88% |
In premarket trading on Thursday, the SPDR S&P 500 ETF Trust (NYSE:SPY) gained 2.81% to $384.63and the Invesco QQQ Trust (NASDAQ:QQQ) rose 3.71% to $273.10, according to Benzinga Pro data.
On the economic front, the Federal Reserve Board of Governor Christopher Waller made a public appearance at 2 p.m. EST.
The Labor Department's consumer price inflation report for October showed that headline consumer price index rose 0.4% month-over-month, the same pace of increase as in the previous month. The annual rate of headline inflation slowed from 8.2% to 7.7%. The core consumer price inflation came in at an annual rate of 6.3.
Around the same time, the Labor Department will release the customary jobless claims report for the week ended Nov. 5. The number of individuals claiming unemployment benefits may have increased from 217,000 to 220,000.
Richmond Fed President Thomas Barkin, also a Federal Open Market member, is scheduled to speak at 9 a.m. EST.
The Treasury will auction 4-week and 8-week bills at 11:30 a.m. EST, and 30-year bonds at 1 p.m. EST.
FOMC member and Cleveland Fed President Loretta Mester will make a public appearance at 12:30 p.m. EST.
Kansas City Fed President Esther George, also an FOMC member, will speak at 1:30 a.m. EST, followed by New York Fed President John Williams at 6:35 p.m. EST.
Stocks In Focus:
- Veru, Inc. (NASDAQ:VERU), which was halted for trading on Wednesday, could react to the adverse FDA panel verdict for its COVID-19 treatment.
- Apple, Inc. (NASDAQ:AAPL) could be in focus after its iPhone supplier Hon Hai Precision Manufacturing Company Limited (OTC:HNHPF) reported a third-quarter earnings miss and guided to flat fourth-quarter revenue.
- Tesla, Inc. (NASDAQ:TSLA) was recovering after Wednesday's slump triggered by Elon Musk's stock sale.
- Rivian Automotive, Inc. (NASDAQ:RIVN) rose over 6% in premarket trading in reaction to its quarterly results.
- AstraZeneca plc (NASDAQ:AZN), Nio, Inc. (NYSE:NIO), Dillard’s, Inc. (NYSE:DDS), US Foods Holding Corp. (NYSE:USFD) and WeWork, Inc. (NYSE:WE) are among the notable companies reporting ahead of the market open.
- Alcon, Inc. (NYSE:ALC), Beazer Homes USA, Inc. (NYSE:BZH). Matterport, Inc. (NASDAQ:MTTR) and Sierra Wireless, Inc. (NASDAQ:SWIR) are all scheduled to report after the close.
Commodities, Other Global Equity Markets:
Crude oil futures are sliding for a fourth straight session, encouraged by reports of robust supplies. A barrel of WTI-grade crude oil traded under $86-a-barrel.
The markets in the Asia-Pacific region pulled back, reacting to the lead from Wall Street overnight. Traders in the region also preferred to stay on the sidelines ahead of the U.S. inflation data.
European markets traded lower in early trading on Thursday.
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