Stock futures little changed ahead of key inflation data: live updates

Traders work on the floor of the New York Stock Exchange in New York City, July 20, 2023.

Brendan McDiarmid | Reuters

Stock futures were little changed Sunday night as investors awaited a batch of economic data next week and earnings from two major technology companies.

Futures contracts linked to the Dow Jones Industrial Average fell 2 points, or 0.01%. S&P 500 and Nasdaq 100 futures rose 0.06% and 0.1%, respectively.

On Friday, stocks ended a week lower on the upside. The Dow rose 75.86 points, or 0.22%, to close at 34,576.59, while the S&P 500 rose 0.14%, snapping a three-day losing streak and closing at 4,457.49. The Nasdaq Composite Index gained 0.09% and settled at 13,761.53. However, all three indices posted a losing week. This was the first negative week in three weeks for the S&P and NASDAQ.

Investors are looking forward to key inflation data next week after a series of stronger-than-expected economic data last week renewed fears that the Federal Reserve may raise interest rates more than previously expected. Traders expect about a 4 in 10 chance of an increase in November after an expected pause in September, according to CME Group’s Federal Reserve Monitoring Tool.

“Overall, the market will be looking for direction amid the recent volatility and concern that the economy will slow in the coming quarters,” Yong-Yu Ma, chief investment strategist at BMO Wealth Management, told CNBC.

Wednesday and Thursday provide the latest CPI and Producer Price Index readings, respectively. Investors are hoping for lower readings, although both are expected to rise due to energy cost pressures.

“Both the CPI and PPI inflation reports will highlight the importance of the oil price, which has pushed toward the upper end of its one-year trading range,” Ma said. “A breakout of WTI above $90 per barrel will begin to raise concerns about future price pressures in the economy.”

Retail sales data is also expected on Thursday, and the University of Michigan Consumer Confidence Survey will be released on Friday, which should give insight into how good spending could hold up for the rest of the year.

Elsewhere, investors are also getting financial updates from two big tech giants: Oracle on Monday and Adobe on Thursday.

Apple will also hold its product event on Tuesday, dubbed “Wonderlust,” during which the company is widely expected to unveil the iPhone 15.

Apple is coming off a down week and fell below its 50-day moving average after reports that China plans to expand a ban on the use of iPhones in government agencies and state-owned enterprises. This raised concerns among investors that the largest stock in the Standard & Poor’s 500 index might collapse.