S&P 500 and Nasdaq 100 futures were fractionally lower early on Wednesday. Nasdaq Composite led declines, falling 1.19% after Micron, Novavax and Upstart warned that future earnings and revenue may come in lower than previously thought. Investors awaiting latest consumer price index report, which could confirm or dash hopes that rising prices have leveled off.

Economists expect the report to show that inflation has cooled slightly, led by slipping oil prices. "A downside surprise plays to 'hopes' that an oil/food commodities peak, plus slower demand, will filter quickly into US inflation data," Deutsche Bank's Alan Ruskin said.

The Federal Reserve will weigh the report, along with other key economic data, ahead of its September meeting where it is slated to hike interest rates again. Earnings season also continues, with Disney's quarterly results due after the bell Wednesday. In addition to Wednesday's consumer price index report, markets also digest Fedspeak from two regional bank presidents.

The July inflation report may show that prices have cooled - at least, that's what economists and investors are hoping. Economists estimate for the July report is that the consumer price index increased only 0.2%, less than the 1.3% it jumped in June. Charles Evans, president of the Federal Reserve Bank of Chicago, will speak Wednesday.

Consumer inflation in July is expected to be 8.7%, less than the 9.1% seen in June. If the reading is lower than it was last month, it may show that we're past peak inflation and beginning to trend in the right direction. The year-over-year pace of consumer inflation was 9.2% in June and 9.3% in May.
Posted by
Tap to Copy the Short Url to This Post: 
One-Stop Business News backed by Mark Cuban. Free to Use →