Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, USA, July 12, 2023.
Brendan McDermid | Reuters
stock futures advanced higher in the night trade after the S&P 500 closed at its highest level in more than a year. Markets were also expecting another key inflation reading.
Disney Stocks added nearly 1% in extended trading after the entertainment giant extended CEO Bob Iger’s contract through 2026, two more years than planned.
futures tied to S&P 500 rose 0.1%, while Nasdaq 100 futures added almost 0.2%. Futures connected to the Dow Jones Industrial Average gained 30 points, or 0.1%.
Stocks rose on Wednesday after a colder-than-expected June consumer price index report eased some concerns that the Federal Reserve could steer the economy into recession as it struggles to bring down sticky inflation.
The S&P 500 and Nasdaq Composite It rose 0.74% and 1.15%, respectively, to hit its highest closing levels since April 2022. The Dow Jones Industrial Average added 86.01 points, or 0.25%.
Fundstrat’s Tom Lee told CNBC’s “Closing Bell: Overtime” on Wednesday that today’s CPI impression, future easing expectations and recent stock activity paint a market that is “behaving more like a soft landing scenario.” ” that many considered unattainable in early 2023.
“I think the Fed has to start to accept that this is in fact a collapse of inflationary pressures and therefore they may then cut their notion of a hike for longer, or the market starts to price it in,” he said. “That’s not a guarantee, but again, we think that’s the case.”
Investors’ attention turns to the producer price index, another key inflation gauge due for release on Thursday. The results could heavily influence future central bank rate hikes and decipher the path forward for inflation.
After a pause in June, traders are pricing in a greater than 92% probability that the central bank will raise rates at its policy meeting later this month, according to CME Group FedWatch Tool.
The first innings of the second-quarter earnings season continue Thursday with results of PepsiCo, delta airlines and Closing before the bell