From the Wall Street Journal’s “Stock Futures Waver Ahead of Inflation Data, Earnings” posted early Wednesday:
U.S. stock futures ticked down ahead of fresh data on consumer prices and the start of earnings season, both of which are expected to provide insight into whether recent concerns about inflation are warranted.
Stocks have been weighed down by fears about inflation in recent days, stoked by rising energy prices and continued bottlenecks in supply chains. Investors are trying to gauge the effect this could have on central bank support for the economy and whether the higher costs for raw materials and energy will erode profits as third-quarter earnings season kicks off.
“Equity markets need to incorporate the higher uncertainty on central banks’ approaches and the uncertainties on the earnings side,” said Antonio Cavarero, head of investments at Generali Insurance Asset Management. “This doesn’t mean the tide has turned, but some higher caution is probably the way to go for the next few weeks.”
Data on the consumer price index for September is set to go out at 8:30 a.m. ET. Economists project that inflation remained at an elevated level, boosted by worker shortages and strained supply chains.
“The Fed will be very sensitive to this number. If it comes very far from market expectations, they will have an incentive to prove they are on top of things,” Mr. Cavarero said.
My take: Apple is still reeling from Bloomberg’s aftermarket uncertainty and doubt sourced by “people with knowledge of the matter.”