Oct. 14: Futures slip as hot CPI lifts yields, bank earnings on deck
US futures pointed lower before the open as hotter-than-expected September CPI pushed Treasury yields higher ahead of bank earnings.
US stock futures pointed lower ahead of Wednesday’s open after the Labor Department’s September Consumer Price Index came in hotter than expected. Headline CPI rose 3.7% year over year, above the 3.6% consensus, while core CPI increased 0.3% month over month and 2.6% year over year, also topping forecasts, according to CNBC. Treasury yields rose on the data, with the 10-year note up more than 6 basis points to around 5.278% and the 30-year near 5.59%; futures tied to the S&P 500 were down roughly 0.2%-0.3% and Nasdaq-100 futures off about 0.5%-0.6%, per CNBC and Yahoo Finance.
The move follows a lower close on Tuesday, when the Dow fell 180.45 points, or 0.35%, to 51,670.10, the S&P 500 slipped 0.02% to 7,805.45, and the Nasdaq Composite dropped 0.15% to 27,204.38, according to TheStreet. Bank earnings were mixed as third-quarter reporting season got underway: JPMorgan Chase’s results missed analyst expectations, while memory-chip makers Micron Technology and Sandisk fell after reports of a competing DRAM breakthrough in China; Johnson & Johnson dropped roughly 6% after its MedTech unit missed sales estimates, and Meta Platforms rose more than 2% following an AI model rollout. In commodities, Brent crude held above $106 a barrel, up about 0.8%, with traders citing Houthi attack risk near Saudi Arabia and the threat of renewed Iranian tanker strikes in the Strait of Hormuz, per Oilprice.com. In Asia, Hong Kong’s Hang Seng Index was little changed, down about 0.1%, while mainland China’s Shanghai Composite fell roughly 0.9%, according to 24/7 Wall St.
Wednesday’s corporate calendar includes third-quarter results from Morgan Stanley (MS) and Bank of America (BAC) before the opening bell, continuing a bank-earnings season that began last week with JPMorgan Chase and Goldman Sachs. Asset manager BlackRock (BLK) and industrial distributor Fastenal (FAST) are also on the earnings slate. With the CPI print now out, attention turns to Thursday’s producer-price and retail-sales data for the next read on inflation and consumer demand.
What to watch today
- Morgan Stanley (MS) and Bank of America (BAC) report third-quarter results before the opening bell, continuing the big-bank earnings season. (Company earnings calendars)
- BlackRock (BLK) and Fastenal (FAST) are also scheduled to post quarterly results Wednesday. (Tickzen earnings calendar)
- The 10-year Treasury yield rose more than 6 basis points to about 5.278% after the hot CPI print, with the 30-year near 5.59%. (CNBC)
- Brent crude held above $106 a barrel amid Houthi attack risk near Saudi Arabia and threats of renewed Iranian tanker strikes in the Strait of Hormuz. (Oilprice.com)
- September producer-price and retail-sales data are due Thursday, the next inflation and consumer-demand readout after today’s CPI. (BLS/Census release calendar)