US stock futures rise ahead of the Wednesday meeting on Wall Street.
Investors will also be closely following inflation data from the US Department of Labor, which will release its consumer price index for September on Wednesday.
It is a measure of how inflation is driving costs down for consumers. Additional information on inflationary pressures for businesses is expected on Thursday when the Labor Department releases its producer price index.
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Oil and other energy prices have soared along with the cost of other raw materials. Semiconductor shortages have slowed the production of many high-value industrial goods such as automobiles and consumer electronics.
On Tuesday, Wall Street’s major indices swung between small gains and losses for much of the day before sales picked up in the last few minutes of trading. The S&P 500 lost 0.2% to 4,350.65. The Dow fell 0.3% to 34,378.34. The Nasdaq lost 0.1% to 14,465.92.
Small business stocks, a measure of confidence in economic growth, outperformed the broader market, driving the Russell 2000 Index 0.6% to 2,234.27.
The pullback of the S&P 500 marked the third straight decline. After two days, the index’s losses have offset its 0.8% rise last week.
The upcoming earnings reports will give Wall Street a clearer picture of how companies fared over the past quarter amid a spike in COVID-19 cases. It will also shed some light on how they’ll play out for the rest of the year.
According to FactSet, S&P 500 companies will expect annual earnings growth of 27.6% for the July-September quarter. That’s a drop from analysts’ estimate of 28.1% growth in July.
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JPMorgan Chase will start banking profits on Wednesday. Bank of America, Wells Fargo and Citigroup will release their latest quarterly results on Thursday.
Many industries are feeling the pressure of rising inflation with higher costs for shipping and raw materials. Companies warn that their financial results could suffer due to the supply chain problems.
The supply chain crisis has also raised the prices of many consumer goods, which could hurt consumer spending and further slow economic recovery. Investors will be informed of consumer spending when the Department of Commerce releases its September retail sales report on Friday.
Meanwhile, stocks in Asia were mixed on Wednesday after a day of ups and downs on Wall Street ended with most benchmarks falling as traders waited for updates on inflation and corporate earnings.
Tokyo’s Nikkei 225 index fell 0.3% to 28,158.28 and the S & P / ASX 200 fell 0.1% to 7,276.80. The Shanghai Composite Index lost 0.4% to 3,534.43. Seoul’s Kospi rose 0.2% to 2,945.54.
Hong Kong was closed for a public holiday.
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Markets have been troubled for weeks as investors try to figure out how the economy will continue its recovery, with COVID-19 remaining a threat and rising inflation potentially depressing consumer spending and corporate finances.
The Chinese producer price index will be released on Thursday. Economists are forecasting a year-over-year increase of over 10%, up from 9.5% in August.
The 10-year government bond yield fell to 1.58% from 1.60% late Friday. The bond market was closed on Monday for Columbus Day.
In other trading, US benchmark crude fell 16 cents to $ 80.48 a barrel in electronic trading on the New York Mercantile Exchange. On Tuesday it rose 12 cents to $ 80.64 a barrel.
Brent crude, the international standard, fell 16 cents to $ 83.26 a barrel.
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The US dollar slipped from 113.59 yen to 113.46 Japanese yen late Tuesday. The euro rose from $ 1.1530 to $ 1.1553.
AP business writers Damian J. Troise and Alex Veiga contributed to this.