Stock futures rose Wednesday, after the latest consumer price index reading came in lighter than expected. Futures tied to the Dow Jones Industrial Average added 188 points, or 0.5%, while S&P 500 futures and Nasdaq-100 futures respectively gained 0.6% and 0.7%. The CPI report is slated for release at 8:30 a.m. ET. Economists polled by Dow Jones expect the consumer price index to show a 0.4% monthly gain, and a 0.3% increase excluding food and energy. Economists forecast a 3.4% year-over-year increase for headline CPI, following a 3.5% rise in March. The data comes after another report pointed to stickier inflation. The producer price index for April rose 0.5%, more than expected, raising concern that Federal Reserve rate cuts may be delayed. Despite the PPI report, stocks closed higher on Tuesday. Signs that inflation is easing in other respects – including housing and auto insurance – could be a good omen for markets from here and the Fed’s policy, according to Fundstrat Global Advisors’ Tom Lee. “It’s going to make it clear to markets that … inflation is now normalizing, the economy is in good shape, and rates are so restrictive the Fed actually needs to cut rates,” the head of research said on CNBC’s “Closing Bell” on Tuesday. “That’s actually quite good for stocks. If it’s a pause, it’s good for stocks. If it’s a cut, I think it’s even better.” Boot Barn dropped more than 6% on disappointing guidance for the full year, while Nextracker gained 11% on better-than-expected revenues. U.S. Treasury yields were lower on Wednesday as investors considered the outlook for inflationary pressures and awaited the latest consumer price index data. The yield on the 10-year Treasury was down by 3 basis points at 4.41%. The 2-year Treasury yield was last at 4.795% after falling by more than 2 basis points. Asia-Pacific markets were mixed Wednesday, tracking Wall Street gains overnight that saw the Nasdaq Composite index hit a fresh record closing high despite strong inflation data. Markets in South Korea and Hong Kong were shut on Wednesday for a public holiday. In Australia, the S&P/ASX 200 index closed 0.35% higher at 7,753.70. Japan’s Nikkei 225 gained 0.08% to end at 38,385.73, while the broader Topix ended flat at 2,730.88. Crude oil futures edged lower Wednesday as the International Energy sees global demand growing less than originally forecast this year. World oil demand is forecast to grow by 1.1 million barrels per day this year, down 140,000 bpd from last month’s projection as demand in developed economies softened in the first quarter, according to an IEA report. U.S. oil and Brent are down 5.4% and 6.86%, respectively, for the month. West Texas Intermediate June contract: $77.66 a barrel, down 36 cents, or 0.46%. Year to date, U.S. crude oil has gained 8%. Brent July contract: $81.96 a barrel, down 43 cents, or 0.52%. Year to date, the global benchmark has gained 6%. Gold prices traded flat on Wednesday as investors looked forward to a critical U.S. inflation print that could offer clues on the Federal Reserve’s interest rate-cut trajectory. Spot gold held its ground at $2,359.99 per ounce, as of 0704 GMT, trading in a narrow $6 range, after gaining 1% on Tuesday. U.S. gold futures rose 0.2% to $2,365.50.
Roodeweg 222, Willemstad, Curaçao