Wednesday April 13th


Stock futures rebound following S&P 500′s 3-day losing streak on inflation fears

U.S. stock index futures were higher in early morning trading Wednesday, as Wall Street tried to recover from a downbeat session following the release of key inflation data. Futures on the Dow Jones Industrial Average rose 93 points, or 0.3%. S&P 500 futures and Nasdaq 100 futures climbed 0.3% and 0.4%, respectively. Those moves come after the S&P 500 and Nasdaq posted their third straight losing session. Data released Tuesday showed consumer prices rise 8.5% in March from the previous year — the highest level since 1981 — further fueling concerns of tighter monetary policy from the Federal Reserve. However, core CPI rose 0.3%, slightly below expectations. Some on Wall Street saw this as a sign that inflation may be nearing a peak. “I think it’s very likely inflation peaked,” Guggenheim Partners Global chief investment officer Scott Minerd told CNBC’s “Closing Bell: Overtime” on Tuesday. “If it didn’t peak in March, we’re in the process of peaking.” The 10-year Treasury hit a new three-year high following the report, topping 2.82% before pulling back. On Wednesday, the benchmark rate traded at 2.75%. Traders are also awaiting the March producer prices report on Wednesday for more possible signs inflation is near a peak. March PPI was expected to climb 1.1% last month, according to economists polled by Dow Jones. The corporate earnings season is slated to kick off with JPMorgan Chase and Delta Air Lines slated to report Wednesday. Shares in Asia-Pacific were mixed on Wednesday as investors watched for market reaction to the release of Chinese trade data. New Zealand also hiked its rate by 50 basis points, its biggest increase in more than 20 years. Mainland China’s Shanghai composite slipped 0.82%, closing at 3,186.82 while the Shenzhen component dropped 1.601% to 11,568.17. Hong Kong’s Hang Seng index rose about 0.1%, as of its final hour of trading. Elsewhere, the Nikkei 225 in Japan jumped 1.93% on the day to 26,843.49 while the Topix index advanced 1.42% to 1,890.06. South Korea’s Kospi rose 1.86%, closing at 2,716.49. Oil prices eased on Wednesday, giving up earlier gains, after China and Japan reported weak economic data, fueling concerns about growth and oil demand in the world’s top consumers. Brent crude futures was down 34 cents, or 0.3%, to $104.30 a barrel at 0501 GMT, while U.S. West Texas Intermediate (WTI) crude futures fell by 46 cents, or 0.5%, to $100.14 a barrel. Both contracts had surged more than 6% in the previous session. Gold firmed near a one-month peak on Wednesday, as the Russia-Ukraine conflict boosted bullion’s safe-haven demand while investors also bought it as a cushion against soaring inflation. Spot gold was up 0.5% at $1,975.45 per ounce, as of 0933 GMT, after hitting $1,978.21 on Tuesday, its highest since mid-March. U.S. gold futures were up 0.2% at $1,978.90.