Stock Market Today: Trading on Wall Street Moderate Ahead of Key US Inflation Report
Trading on Wall Street was muted early Wednesday ahead of the latest update on inflation exit before the markets open.
The future of the S&The P 500 was up less than 0.1% before the bell, while Dow Jones futures were down less than 0.1%.
Wednesday’s update on consumer inflation and a Thursday report on wholesale inflation will be the last important data the Federal Reserve gets before its meeting next week, at which many investors expect the third reduction this year to be interest rate.
The Fed was relax its main interest rate of a two-decade high since September to ease pressure on the slowing jobs market, after bringing inflation almost back to its 2% target. Lower interest rates would help support the economy, but could also fuel further inflation.
Expectations of a series of cuts through next year were a key reason why the S&The P 500 has set numerous records this year.
In premarket trading Wednesday, Macy’s fell nearly 10% after the department store chain announced a drop in profits in the third quarter and sales as consumers continue to spend on essential products amid high prices. Macy’s raised its annual sales forecast but lowered its profit forecast, citing an uncertain economic environment.
Kroger shares stabilized early Wednesday after falling more than 5% late Tuesday when the supermarket giant’s proposed merger with Albertsons was canceled. rejected by judges in separate cases in Oregon and Washington. Grocery stores say the merger would help them better compete with big retailers like Walmart, Costco and Amazon, but critics of the deal, including the Federal Trade Commission, have said the tie-up would hurt competition.
Stitch Fix was a big winner Wednesday morning after the custom fashion styling service posted a smaller-than-expected loss and raised its full-year outlook. Its shares jumped 20% before the bell.
Dave & Buster’s fell 15% after the restaurant and arcade chain posted more than double the loss Wall Street expected due to falling sales.
In Europe at midday, Germany’s DAX was flat, while the CAC 40 in Paris and Britain’s FTSE 100 each gained 0.3%.
Hong Kong’s Hang Seng lost 0.8% to 20,155.05 while the Shanghai Composite Index rose 0.3% to 3,432.49 as Chinese leaders called a annual planning meeting in Beijing, which should set economic policies and growth targets for the coming year.
Earlier this week, top leaders agreed on a “moderately accommodative” monetary policy at a meeting of the ruling Communist Party’s Politburo. This is the first time in 10 years that we have moved away from a more cautious and cautious position. Reports from state media suggest more robust stimulus measures to support the world’s second-largest economy, but analysts remain skeptical of possible drastic measures.
The South Korean market rose for a second straight day, recovering from last week’s political unrest. The Kospi added 1% to 2,442.51.
Japan’s benchmark Nikkei 225 index was little changed at 39,372.23 after data showed Japan’s wholesale inflation in November rose 3.7% year-on-year, marking three straight months of increases and increasing pressure on the Bank of Japan to raise interest rates.
Japan’s central bank will hold a two-day policy meeting next week. Markets widely expect the bank to raise short-term interest rates from the current level of 0.25%.
Australia S&The P/ASX 200 fell 0.5% to 8,353.60.
Benchmark U.S. crude oil gained 91 cents to $69.50 a barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the international standard, fell 7 cents to $71.05 a barrel.
The US dollar fell from 151.93 Japanese yen to 152.65 Japanese yen. The euro was trading at $1.0504, down from $1.0531.
