Dow Jones futures rose slightly overnight, along with S&P 500 futures and Nasdaq futures, after a tough day for the S&P 500 and stock market rally. All eyes will turn to the October CPI inflation report.
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The stock market rally lost ground Wednesday, with the S&P 500 back below its 50-day moving average. Mixed election results, Bitcoin’s continued woes, renewed China lockdowns — and the looming consumer price index — were possible contributors.
Bitcoin plunged to fresh two-year lows as Binance, the world’s largest cryptocurrency exchange, said Wednesday afternoon that it would not buy rival FTX.
Megacaps didn’t help. Tesla (TSLA) plunged below key levels to a two-year low. Amazon.com (AMZN) also set fresh bear-market lows. Apple (AAPL) had its worst close since June, while Microsoft (MSFT) and Google parent Alphabet (GOOGL) fell slightly.
Facebook parent Meta Platforms (META) was the exception, rebounding after announcing job and spending cuts. But key suppliers fell.
Key Earnings
Catalyst Pharmaceuticals (CPRX), Excelerate Energy (EE), Celsius Holdings (CELH), Rivian (RIVN) and Wynn Resorts (WYNN) reported late Wednesday.
CPRX stock rose solidly in after-hours action as Catalyst Pharma beat EPS and revenue views. The biotech also implied Q4 sales in line with consensus. Catalyst stock fell 5.35% on Wednesday, back to around an early entry.
CELH stock jumped overnight on strong Celsius revenue growth after the energy drink maker fell Wednesday to the lowest level since July. Rivian stock rebounded on mixed Q3 results after tumbling to a four-month low on Lucid (LCID) results. EE stock fell modestly in limited trading after Excelerate earnings topped views. Excelerate stock skidded Wednesday, testing the 50-day line.
Meanwhile, networking firm Digi International (DGII) and Tesla China EV rival Nio (NIO) are on tap early Thursday. DGII stock pulled back Wednesday toward its 50-day line as it works on an ascending base buy point. Nio stock tumbled to a two-year closing low as southern manufacturing hub Guangzhou announced Covid lockdowns, slamming many Chinese stocks.
CPI Inflation Report
The October consumer price index will be released at 8:30 a.m. ET on Thursday. Economists expect the CPI inflation report to show prices rose 0.7% vs. September. Core CPI, which excludes food and energy, should climb 0.5%.
The annual CPI inflation rate should dip to 8% from September’s 8.2%. Core inflation is seen holding steady at 6.6%.
The Federal Reserve wants to see clear-and-convincing evidence of inflation slowing before ending rate hikes. Markets are slightly leaning toward a 50-basis-point Fed rate hike in December, but there’s still a strong chance of a fifth straight 75-basis point move. The November employment data and CPI report will be released before the December Fed meeting and announcement.
Dow Jones Futures Today
Dow Jones futures advanced 0.2% vs. fair value. S&P 500 futures rose 0.2% and Nasdaq 100 futures climbed 0.4%.
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Read More: S&P 500 Falls Below Key Level On Elections, Tesla, Bitcoin; CPI