July 4, 2022

The future of US stocks was mixed as the market pushed back the inflation report

Traders work on the floor of the New York Stock Exchange.

NYSE

U.S. stock futures rallied on Wednesday night after the July inflation report and the Dow Jones Industrial Average and the S&P 500 hit record highs.

Dove Future 9 points or 0.03% higher. The future of the S&P 500 And Nasdaq 100 futures Fell 0.02% and 0.14%, respectively.

During the regular trading session, the Dow rose 0.6% to close at a new high of 35,484.97. The S&P 500 was up 0.2% at 4,447.70 all the time. The Nasdaq compound traded down 0.1% at 14,765.13.

According to the Department of Labor, the consumer price index rose 5.4% in July last year and 0.5% in the previous month.

However, core inflation rose to just 0.3% in July (and 4.3% year-on-year). Major inflation excludes energy and food prices and is considered by economists to be the most reliable measure because energy and food prices are so volatile.

Brad Macmillan, chief investment officer of the Commonwealth Financial Network, said: “Inflation has been kept to a minimum.” For both headline and key figures, monthly and annual numbers were more or less stable than last month. Based on that data, inflation is definitely not at an unstoppable rate. “

Treasury yields have fallen after the inflation report and the 10-year note auction. Dallas Fed President Robert Kaplan Told CNBC The central bank should begin removing the stimulus in October.

“The inflation story is about isolated components, rather than general increases in prices, even those components that show signs of peak,” Macmillan said. “When we dig into the numbers, inflation is above where it was, but there are signs of a rolling back and a comfortable return.”

Investors are monitoring data on weekly jobless claims released Thursday morning.

Dustin Quali of Built Asset Management said he expects a continued decline, which will strengthen the employment market.

This is an indicator of a higher frequency than the payroll, “he said.” If the claims increase unexpectedly, I worry that this recovery will take longer than expected. Unexpected increases in payroll rates are appropriate. “

Byte Scheduled to report revenue before opening hours. Fruit and CyberArch software are also available to report in the afternoon.