Wall Street Seen Opening Slightly Higher; Inflation Data In Focus
Futures suggest a slightly positive start for U.S. stocks Tuesday morning, but it will be the data on consumer price inflation that will determine the mood. With the Federal Reserve’s monetary policy decision due on Wednesday, the mood in the market is likely to remain somewhat cautious.
Data on consumer price inflation for the month of November is due at 8:30 AM ET.
Consumer price growth slowed to 3.2 in October from 3.7 percent in September. Economists had expected the pace of growth to decelerate to 3.3 percent.
Core consumer prices increased 4 percent in October, compared to the same month a year ago. The annual rate was expected to come in unchanged from 4.1 percent in the previous month.
The Fed is widely expected to leave interest rates unchanged on Wednesday. The focus is on the central bank’s accompanying statement and projections.
Market is also awaiting reports on producer price inflation, retail sales and industrial production this week.
Stocks turned in a relatively lackluster performance during trading on Monday but managed to end the day moderately higher.
The Dow climbed 157.06 points or 0.4 percent to 36,404.93, the Nasdaq edged up 28.51 points or 0.2 percent to 14,432.49 and the S&P 500 rose 18.07 points or 0.4 percent to 4,622.44.
In overseas trading, Asian stocks ended broadly higher on Tuesday after a cautious session as investors awaited cues from key U.S. CPI report and the Federal Reserve’s rate decision.
European stocks are turning in a mixed performance in cautious trade ahead of key economic data, and rate decisions by major central banks.
In commodities, West Texas Intermediate Crude oil futures are down $0.21 or 0.29 percent at $71.11 a barrel. Gold futures are gaining $8.70 or 0.45% at $2,002.40 an ounce.
In the currency market, the dollar is weak, with the index dropping by about 0.3 percent to 103.79. Against the Euro, the dollar is weak at 1.0799, and against the Yen, it is down at 145.18.
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