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Traders work on the floor of the New York Stock Exchange (NYSE) during morning trading on January 11, 2024 in New York City.
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Stock futures were little changed on Thursday evening, as investors looked ahead to a wholesale inflation reading and quarterly results from major banks.
Futures tied to the S&P 500 inched higher by 0.1%, while Nasdaq 100 futures ticked up 0.1%. Futures linked to the Dow Jones Industrial Average added 43 points.
The action follows a losing day for the major averages, with the S&P 500 and the 30-stock Dow pulling back from their records in Thursday's session. The broad market index slipped 0.2%, while the Dow lost about 0.1%. The Nasdaq Composite posted a slight decline of 0.05%.
Fresh data issued on Thursday raised investors' fears that inflation wasn't cooling off quickly enough. September's consumer price index rose 0.2% on a monthly basis and 2.4% from a year earlier. Those results topped the 0.1% monthly advance and 2.3% year-over-year gain economists polled by Dow Jones anticipated.
Fed funds futures trading suggests a roughly 87% likelihood that the Federal Reserve will dial back interest rates by a quarter point in November, according to the CME FedWatch Tool. However, central bank policymakers will keep a close eye on additional data, which will shape their course on rates.
"The data isn't compelling enough to deter the Fed from cutting entirely in November," said Preston Caldwell, senior U.S. economist at Morningstar. "But further data like this (as well as strong data on economic activity) could induce a skip in the December 2024 or January 2025 meetings."
Indeed, another catalyst awaits on Friday morning: the producer price index, a measure of wholesale prices. Economists polled by Dow Jones expect the PPI index to have risen 0.1% in September on a monthly basis. Excluding food and energy costs, they forecast a 0.2% advance.
JPMorgan Chase and Wells Fargo are also slated to report quarterly earnings before the bell. The results could influence the market on Friday.
The major averages are heading into the final day of the week with modest gains. The S&P 500 is up 0.5% week to date, while the Dow is toting a 0.2% gain. The Nasdaq is the outperformer of the three, up 0.8% in the period.
Warren Buffett’s Berkshire Hathaway cuts Bank of America stake to less than 10%
Berkshire Hathaway sold down its position in Bank of America, bringing its stake below a key reporting threshold.
In a filing with the U.S. Securities and Exchange Commission, Buffett disclosed the sale of more than 9.5 million shares, split between three transactions made from Tuesday to Thursday.
The sale brings the stake down to about 9.987%. That's below the 10% threshold that would subject Berkshire to report its transactions in timely manner.
Read more about Berkshire's latest sale from CNBC's Yun Li here.
—Darla Mercado
Investors should position themselves for a lower interest rate environment, says UBS
Investors should be prepared for a lower interest rate environment as the Federal Reserve continues to monitor inflation data and future rate cuts, according to UBS.
"We continue to recommend investors position for a lower-rate environment, deploying excess cash, money-market holdings, and expiring fixed-term deposits into assets that can offer more durable income," UBS Global Wealth Management chief investment officer Solita Marcelli wrote on Thursday.
" These would include bond ladders, medium-duration investment grade bonds, diversified fixed income strategies, and equity income strategies," Marcelli added. "We also believe lower rates make a favorable backdrop for equities, and favor AI beneficiaries and quality stocks."
— Brian Evans
Stock futures open little changed
Stock futures were little changed on Thursday as Wall Street prepares for another batch of inflation data.
Futures tied to the S&P 500 ticked up 0.02%, while Nasdaq 100 futures hovered near the flatline. Dow Jones Industrial Average futures added 4 points, or less than 0.1%.
— Brian Evans
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