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U.S. stock index futures climbed on Wednesday as a bond selloff eased up ahead of the latest inflation report due Thursday, and investors waited for another big batch of earnings reports.
How are stock-index futures trading?
-
S&P 500 futures
ES00,
+0.73%
rose 0.7% to 4,543 -
Dow Jones Industrial Average futures
YM00,
+0.53%
rose 0.6%, or 200 points, to 35,544 -
Nasdaq-100 futures
NQ00,
+1.00%
gained 0.8% to 14,855
Tuesday’s action saw the Dow industrials
DJIA,
climb 371.65 points, or 1.1%, to close at 35,462.78, its best daily gain since Jan. 31. The S&P 500
SPX,
rose or 0.8% to end at 4,521.54 for its best day since Feb. 2. The Nasdaq Composite
COMP,
climbed 1.3% to finish at 14,194.45.
What’s driving the markets?
Investors on Wednesday were getting a breather from a recent bond selloff. The yield on the Treasury note
TMUBMUSD10Y,
was last down 4 basis points to 1.919% after reaching 1.954% on Tuesday, its highest since 2019.
But investors are still keeping an eye on the key 2% level, especially as important inflation data looms for Thursday. Annual consumer price inflation is expected to rise to 7.2% for January, after reaching a 40-year high of 7% in December.
Read: ‘This is not 1980’: What investors are watching as next U.S. inflation reading looms
“Improved sentiment is on the back of more optimism about reopening, meanwhile the hawkish Fed expectations and the rising yields continue being a serious threat to the actual gains, as the major triggers behind the latest bond selloff are still in play,” said Ipek Ozkardeskaya, senior analyst at Swissquote, in a note to clients.
“This means that there is a high risk of a sudden mood swing before Thursday’s U.S. inflation data,” she said.
Investors are also looking out for more earnings on Wednesday, from CVS Health Corp.
CVS,
Yum Brands Inc.
YUM,
ahead of the open, followed by The Walt Disney Co.
DIS,
and MGM Resorts International
MGM,
after the close of the market.
Read: After ‘baptism by fire,’ Disney CEO looks for a rebound
Which stocks are in focus?
-
Shares of Chipotle Mexican Grill Inc.
CMG,
+0.51%
rose 6% in premarket trading after the fast-food chain more than doubled its profit to a record high in 2021, and spoke of expansion plans. -
Mandiant Inc.
MNDT,
+17.86%
shares rose more than 2% after the cybersecurity software and services company reported forecast-beating results. Shares climbed during Tuesday’s regular session following a report that Microsoft Corp.
MSFT,
+1.20%
was in talks to buy the company. -
Lyft Inc.
LYFT,
+5.37%
shares fell 3% after the ride-share operator met its goal of full-year positive Ebitda and spoke of a “solid” fourth quarter, but offered a cautious forecast.
How are other assets trading?
-
The ICE U.S. Dollar Index
DXY,
-0.16% ,
a measure of the currency against a basket of six major rivals, fell 0.2%. -
West Texas Intermediate crude for March delivery
CL.1,
-0.46% CLH22,
-0.46%
slipped 0.5% to $88.90 a barrel. Gold futures for April delivery
GC00,
-0.03% GCJ22,
-0.03%
were flat at $1.827.60, near its Tuesday close, which was the highest most-active contract settlement since Jan. 26, FactSet data showed. -
Bitcoin
BTCUSD,
-1.06%
was down 0.3% -
The Stoxx 600 Europe
SXXP,
+1.46%
rose 1.5%, while the FTSE 100
UKX,
+0.66%
gained 0.5%. -
The Shanghai Composite
SHCOMP,
+0.79%
rose 0.7%, while the Hang Seng Index
HSI00,
-0.54%
jumped 2% and Japan’s Nikkei 225
NIK,
+1.08%
rose 1%.
