US stock futures point way higher before inflation
New York: U.S. stock futures pointed to a positive start for Wall Street on Wednesday ahead of a hotly-awaited reading on inflation seen as crucial to the fate of a two-week old downturn.
The data due at 8:30 a.m. ET is expected to show U.S. consumer prices increased solidly in January, boosted by rising gasoline and rents, but annual inflation growth is expected to have slowed to 1.9 percent, and to 1.7 percent on a core basis.
That might soothe some of the nerves over rising price pressure, and resulting expectations of higher interest rates and a less-bullish U.S. consumer, that sparked the initial selloff two Fridays ago.
Data on retail sales is also due at the same time, forecast to increase 0.2 percent in January after a 0.4 percent gain in December.
By 6:49 a.m. ET, Dow e-minis 1YMc1 were up 139 points, S&P 500 e-minis ESc1 were up 12.25 points and Nasdaq 100 e-minis NQc1 were up 33.25 points.
Following a slump into correction territory last week, the S&P 500 .SPX has recovered 3.2 percent in the past three sessions. It remains down 7.3 percent from a record high on Jan. 26 and is currently priced at levels from early December.
The CBOE Volatility index .VIX, known as Wall Street’s fear gauge, whose impact on funds using computer-driven trading strategies is also seen as a contributing factor to the selloff, eased to a week low of 22.81, after shooting above 50 points in the peak of last week’s falls.
VIX contracts are set to expire, potentially making the index more volatile than usual.
Among early movers, Chipotle Mexican Grill Inc (CMG.N) gained more than 10 percent in premarket trading after the company hired former Taco Bell head, Brian Niccol, as the new chief executive.
Fossil Group (FOSL.O) jumped nearly 70 percent after the watch and accessories retailer reported better-than expected quarterly results.
Chinese internet search firm Baidu (BIDU.O) gained 5.2 percent after reporting upbeat quarterly revenue and the company unveiled a U.S. listing plan for its Netflix-like video platform iQiyi.
Of the 70 percent of the S&P 500 companies that have reported earnings, nearly 78 percent of them topped profit expectations, according to Thomson Reuters data. That is above the 72 percent average beat-rate in the past four quarters.
Atos has agreed to buy Michigan, US-based information technology firm Syntel for $3.4 billion, or $41 per Syntel share, in an all-cash transaction.
China’s sorghum imports in June surged 38.1 percent on year, boosted by a temporary easing of Sino-U.S. trade tensions, while corn imports for the month rose to one of highest levels in the past decade, customs data showed.
Robotic process automation company Automation Anywhere on Monday partnered EdCast for "futureskills," a Nasscom skilling initiative, to train Indian students in robotics.
A revamped Bank of England payments system should be able to hook up with fintech firms using distributed ledger technology (DLT), the central bank said on Monday in a boost to the development of blockchain in Britain.
Oil prices rose on Monday on worries over supply after tensions worsened between Iran and the United States, while some offshore workers began a 24-hour strike on three oil and gas platforms in the British North Sea.
The station, which was named after Lord Elphinstone, the Governor of Bombay Presidency from 1853 to 1860, has now been renamed in honour of a local deity.
Lavasa -an ultimate getaway, a city that would offer the charms of European locales, with five star comforts in a scenic part of Maharashtra has now become an abandoned town.
A second chargesheet by the ED has confirmed the trail of illegal cash Mallya transferred to his accounts across global tax havens.
Delayed payment by GMR-led DIAL, the Delhi airport operator, to the CISF guards could eventually lead to passengers paying more to fly out of the Indian Capital.
The West Bengal Police has claimed to have busted a Rs 100 crore plus job racket in the Indian Railways following a crucial arrest in the Indian Capital.