Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Dow futures rise 75 pts; sentiment climbs ahead of key CPI data

Published 01/09/2023, 08:24 PM
Updated 01/09/2023, 08:24 PM
© Reuters.

© Reuters.

By Peter Nurse

Investing.com -- U.S. stocks are seen opening higher Monday, continuing the positive tone seen at the end of last week after the December jobs report raised hope that inflation may have peaked.

At 07:00 ET (12:00 GMT), the Dow Futures contract was up 75 points, or 0.2%, S&P 500 Futures traded 11 points, or 0.3% higher, and Nasdaq 100 Futures climbed 33 points, or 0.3%.

The three main indices closed sharply higher Friday, with the blue-chip Dow Jones Industrial Average ending up 700 points, or 2.1%, the broad-based S&P 500 gaining 2.3%, and the tech-heavy Nasdaq Composite surging 2.6% higher.

These gains followed Friday's official jobs report showing that while nonfarm payrolls came in slightly higher than expectations, wages increased at a slower pace than expected.

This, along with data showing the first contraction in U.S. services industry activity in more than 2½ years, heightened hopes that the Federal Reserve could again slow the pace of its interest rate hikes when it next meets in February.

The economic data slate is largely empty Monday, but the U.S. consumer price index for December is due on Thursday and could well help determine the size of the Federal Reserve’s next interest-rate increase.

The headline annual figure is seen rising 6.5%, down from 7.1% the previous month, with the monthly number climbing just 0.1%. The core CPI number, which excludes food and energy, is projected to have risen 0.3% on the month in December, an annual rise of 5.7%.

Thursday’s figures will be some of the last inflation indicators officials will see before the Fed policy-setting meeting from Jan. 31-Feb. 1.

In the corporate sector, a number of companies are due to start reporting fourth-quarter earnings in the coming week, with the banking sector in particular focus - Wells Fargo (NYSE:WFC), Citigroup (NYSE:C), Bank of America (NYSE:BAC), and JPMorgan (NYSE:JPM) are all due to report on Friday.

CinCor Pharma (NASDAQ:CINC) stock more than doubled premarket after AstraZeneca (NASDAQ:AZN) announced plans to acquire the U.S. biotech in a deal worth as much as $1.8 billion.

Oil prices rose Friday, helped by the news of the reopening of China’s borders, for the first time in three years, boosting the outlook for fuel demand growth in the world’s largest crude importer.

Adding to the positive sentiment was the news of a ship running aground in the Suez Canal Authority. Although the Liberian-flagged vessel was quickly refloated, minor delays were still to be expected and these could have a small impact on global trade flows.

By 07:00 ET, U.S. crude futures traded 3.2% higher at $76.12 a barrel, while the Brent contract rose 3% to $80.89 a barrel.

Both contracts tumbled more than 8% last week, their biggest weekly declines at the start of a year since 2016, on global recession concerns.

Additionally, gold futures rose 0.4% to $1,877.20/oz, while EUR/USD traded 0.4% higher at 1.0684.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.