Stock futures are little changed ahead of key inflation reading

Finance

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, April 28, 2022.
Brendan McDermid | Reuters

Stock futures dipped in overnight trading Tuesday ahead of a key inflation reading.

Futures on the Dow Jones Industrial Average shed about 35 points, or 0.1%. S&P 500 futures eased 0.1% and Nasdaq 100 futures ticked down 0.1%.

The moves come after the Dow fell for a fourth consecutive day Tuesday in a volatile trading session alternating between gains and losses. The S&P 500 ticked up 0.25% and the Nasdaq Composite gained about 1%.

Mega-cap technology names, which have struggled in recent weeks, led gains Tuesday. Microsoft and Apple each rose more than 1%.

Investors are awaiting the release of April’s consumer price index Wednesday morning for the latest temperature check on inflation. Rising prices have been front-of-mind, particularly as the Federal Reserve is hiking interest rates and trimming its balance sheet to address inflation.

“We are seeing signs on a month-over-month basis that inflation is peaking,” Brian Belski, BMO Capital markets chief investment strategist, told CNBC’s “Closing Bell: Overtime” on Tuesday. “But are we going to see some sort of a surprise number? That could really get things going.”

Economists expect the CPI to rise 0.2% from the month prior and 8.1% year over year, according to the Dow Jones consensus estimate. That compares with March’s 8.5% year-over-year pace.

Investors are also looking to earnings reports from companies including Toyota Motors, Walt Disney and Beyond Meat.

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