Stock futures slip as September consumer inflation report looms: Live updates

3 weeks ago 16

ARTICLE AD BOX

Traders work on the floor of the New York Stock Exchange during morning trading in New York City.

Michael M. Santiago | Getty Images

U.S. stock futures slipped Thursday as investors looked ahead to the release of September's consumer price index report.

Futures tied to the Dow Jones Industrial Average fell 50 points, or 0.1%. S&P 500 futures were 0.1% lower, and Nasdaq 100 futures fell 0.2%.

September's CPI report is due at 8:30 a.m. ET, with investors looking for further signs that inflation is on a cooling trend. Economists polled by Dow Jones anticipate a 0.1% increase on a monthly basis, and a 2.3% advance over the prior 12 months.

The result will also inform the Federal Reserve's next steps on policy at its November meeting. Fed funds futures trading data suggests a roughly 70% likelihood of a quarter-point cut, according to CME Group's FedWatch tool.

Stephanie Roth, chief economist at Wolfe Research, thinks a 50 basis point cut is "off the table," and the question is now whether the Fed will trim rates by 25 basis points or hold steady in November. "Base case for us is that they're able to cut," she said Wednesday on "Power Lunch." "Tomorrow's CPI should be supportive of that, something with core CPI coming in at 0.3%." Economists polled by Dow Jones see core CPI, which excludes food and energy prices, rising by 0.2% on a monthly basis.

Other economic releases due on Thursday morning include weekly initial jobless claims.

The S&P 500 and Dow ended Wednesday's session with fresh record closes. The broad market index rose 0.71%, also registering an all-time high during trading, while the 30-stock Dow jumped more than 400 points, or 1%. Big technology stocks were notable gainers in the rally, lifting the Nasdaq Composite to a 0.6% advance.

Delta falls after mixed earnings report

Delta Air Lines shares were down more than 5% in the premarket after the airline posted mixed quarterly results.

The company earned an adjusted $1.50 per share on revenue of $14.59 billion. Analysts polled by LSEG expected a profit of $1.52 per share on revenue of $14.67 billion. That said, Delta still expects solid fourth-quarter earnings despite lower demand around the election.

— Fred Imbert

Generac shares fall as Hurricane Milton batters Florida

Shares of power generator builder Generac were down more than 2% in the premarket as Hurricane Milton batters Florida. The stock had been rising as the storm approached the state's west coast. Week to date, it's up 9%.

Insurance stocks Progressive, AIG and Travelers rose slightly.

— Fred Imbert

European markets open slightly higher

European markets opened marginally higher Thursday as investors await the latest U.S. inflation data for more signs that price pressures are easing.

The pan-European Stoxx 600 was up 0.15% in opening trade, with sectors and major bourses diverging.

Insurance stocks led gains, up 0.61%, as Hurricane Milton's devastating hit to Florida pointed to stronger prospects for the sector. On the other end, autos shed 0.84% as competition pressures add to continued troubles for European carmakers.

— Karen Gilchrist

Signs of a thawing housing market ahead, says U.S. Bank

The tailwinds from a lower interest rate environment are helping to revive the housing market again, which could be a positive catalyst in 2025, according to U.S. Bank.

Expectations for further rate cuts by the Federal Reserve and slowing inflation are helping to bring down mortgage levels to their lowest levels in two years.

"Lower mortgage rates are breathing some life back into the housing market, evidenced by a ramp up in weekly mortgage applications by almost 50% since the end of July, to the highest point since mid-2022, according to the Mortgage Bankers Association," said Tom Hainlin, senior investment strategist at U.S. Bank.

"Lower mortgage rates should push up housing demand, bring some additional inventory online, and provide a modest boost to home sales and housing-related consumer spending," Hainlin added.

— Hakyung Kim