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Traders work on the floor of the New York Stock Exchange.
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Stock futures were near the flatline Tuesday evening as investors awaited January's consumer inflation report.
Futures tied to the Dow Jones Industrial Average ticked up 12 points, or 0.02%. S&P 500 futures added 0.02%, while Nasdaq 100 futures were 0.1% higher.
Traders were on guard Tuesday after Federal Reserve Chair Jerome Powell told the Senate Banking Committee that policymakers were in no hurry to make further interest rate cuts. It was the first of two appearances for Powell on Capitol Hill this week, and it occurs at a time when President Donald Trump has been willing to issue tariffs against U.S. trading partners.
These trade tensions have kept the market in check, with the S&P 500 ending Tuesday near the flatline, while the Nasdaq Composite fell nearly 0.4%. The Dow outperformed, adding about 0.3%.
Traders get another piece of data — and another market catalyst — on Wednesday morning with January's consumer price index reading. Headline inflation is expected to have grown 0.3% from the prior month and 2.9% from 12 months earlier, according to Dow Jones. Some economists on Wall Street have raised concerns that even as some categories may see disinflation going forward, Trump's tariffs could offset that.
Even with these concerns, the economy remains resilient and investors should bear that in mind, said Ed Yardeni, president of Yardeni Research.
"We tend to focus on the macroeconomic policies … but the reality is that the rest of us working stiffs are doing an amazing job of keeping the economy going despite Washington," he said Tuesday on CNBC's "Power Lunch." "My conclusion is first of all, when it comes to investing, don't let your politics get in the way."
In addition to Wednesday's CPI report, investors will watch Powell's testimony before the House Committee on Financial Services. They will also watch for fresh quarterly results from CVS Health, Robinhood, Cisco Systems and MGM Resorts on Wednesday.
Orange juice futures extend losing streak
Orange juice futures (MAR) were lower again Tuesday, marking their eighth consecutive negative session. OJ hit a low of 385.50 cents per pound, its lowest level since May 9, 2024. This pullback comes despite futures reaching all-time highs in mid-December.
Market observers are surprised by the recent downturn, given ongoing supply constraints in Florida and Brazil. On Tuesday, the USDA revised its Florida orange production forecast downward to 11.5 million boxes—4% lower than the previous estimate and a 36% drop from last season.
Three key factors may be driving the decline, according to Danny Munch, an economist at the American Farm Bureau Federation:
First, orange juice prices have risen so high that consumers and food manufacturers may be shifting to alternatives, a classic case of demand destruction. This trend is exacerbated by growing concerns around sugar content in food and beverages.
Second, traders may believe that prices have peaked and production will eventually rebound. With OJ futures still well above five- and ten-year averages, investors could be taking profits, adding to the selling pressure.
Lastly, a strong dollar and potential tariff concerns make imported orange juice relatively cheaper. This currency effect could be softening price pressures despite supply tightness.
—Nick Wells
Stocks making the biggest moves after hours
Check out some of the companies making headlines in extended trading:
- DoorDash — The food delivery stock traded nearly 6% higher after better-than-expected revenue for the fourth quarter. DoorDash reported revenue of $2.87 billion in its most recent quarter, while analysts surveyed by LSEG forecast $2.84 billion.
- Gilead Sciences — The biopharmaceutical stock advanced 4% after fourth-quarter results surpassed analysts' estimates on the top and bottom lines. Gilead notched adjusted earnings per share of $1.90 on revenue of $7.57 billion. Analysts polled by LSEG were looking for earnings of $1.70 per share on revenue of $7.14 billion.
- Super Micro Computer — The server builder popped more than 4% even as the company slashed its fiscal 2025 full-year revenue guidance. Super Micro now sees full-year revenue ranging between $23.5 billion and $25 billion, while analysts polled by LSEG called for $24.92 billion. The company also said it thinks it will be able to file its delayed annual report by Feb. 25.
Read the full list here.
— Brian Evans
Stock futures open little changed
Stock futures were little changed on Tuesday as investors look toward the January consumer price index report.
Futures tied to the Dow Jones Industrial Average ticked down 7 points, or 0.02%. S&P 500 futures slipped 0.02%, while Nasdaq 100 futures were 0.05% higher.
— Brian Evans
English (US)