Dow Jones Index points to a downward session ahead of CPI data

DOW JONES index futures fell 0.11% to 38,756 and S&P 500 futures fell 0.32% to 5,005. NASDAQ 100 futures fell 0.62% to 17,772.

Wall Street’s major indexes ended a mixed session yesterday, with the Dow closing at a new record and the S&P 500 ending the day slightly lower but managing to hold on to 5,000 points. The tech-heavy Nasdaq is also lower, with profit-taking in some stocks that have risen in recent days. The three major indices are on five-week winning streaks.

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All attention today is focused on the consumer price index (CPI) data for January, which will be published shortly before the opening of trading. FactSet Analyst Consensus expects headline U.S. inflation to fall to an interannual rate of 2.9% in January, down from 3.4% in December and will thus reach its lowest level since March 2021. For its part, core inflation, which excludes the most volatile prices of unprocessed food and energy for its calculation, is expected to fall to 3.7% in January from 3.9% in the previous month. .

But even if those forecasts come true, some warn they may not be enough to justify the faster move to monetary easing that the market expects. Employment, manufacturing and economic growth in the US have been pleasantly surprising, proving resilient to rate hikes over the past year and a half.

“While we expect the CPI to be below 3%, we still believe the market is overly optimistic when it comes to the timing of the first cut,” Grace Peters, head of global investment strategy at JPMorgan Private Bank, said in an interview . With Bloomberg TV.

Indeed, policymakers continue to send a signal to markets that rates cut bets are overdone. Richmond Federal Reserve Bank President Thomas Barkin warned yesterday that US companies, accustomed to higher prices in recent years, could continue to fuel inflation.

The fixed income sector is always very sensitive to changes in monetary policy. The US 10-year yield remained at 4.168%.. The two-year bond offers a yield of 4.474%.

Another highlight continues to be quarterly earnings season, which continues to approach the halfway point. To date, 339 S&P 500 companies have reported. average earnings per share growth of +6.6% compared to +1.5% expected before the first company went public, according to calculations by the Bankinter analytical group. The qualitative balance is 79.9% exceeds expectations, 5.3% meets expectations, and the remaining 14.8% disappoints. In the most recent quarter (Q3 2023), EPS growth was +4.5%, compared to the originally expected decline of -0.7%.

On Tuesday, investors will learn about the accounts of companies such as Coca-Cola Co, toy company Hasbro or Marriott International and others. Casino operator MGM Resorts and kidney dialysis company DaVita will also release their results, but will have to wait until markets close.

ZoomInfo Technologies is one of the main heroes of the day, with impressive growth exceeding 20% ​​ahead of the opening. The company reported fourth-quarter adjusted earnings of 26 cents per share on revenue of $316 million. Analysts had forecast earnings of 25 cents per share and revenue of $311 million.

Outside of earnings season, JetBlue Airways shares soar 15% on the stock market. Activist Investor Carl Icahn announced his stake of almost 10% in the airlinesaying its shares were undervalued.

Icahn increased his stake in a series of purchases in January and February and plans to continue discussions with the company “regarding the possibility of representation on the board of directors,” according to regulatory filings. JetBlue said in a statement that “we are always open to constructive dialogue with our investors.”

In commodity markets, oil prices are rising on Tuesday given tensions in the Middle East. Another looks at OPEC’s monthly report due this afternoon, with Iraq under scrutiny after production studies showed the cartel’s second-biggest producer was pumping oil beyond its quota.

European benchmark Brent crude rose 0.72% to $82.59 a barrel, while U.S. West Texas futures rose another 0.72% to $77.47.

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