Futures on all three major benchmarks are lower this morning
Stock futures are firmly lower this morning, with futures on the Dow Jones Industrial Average (DJI) down 218 points and extending their losses after the latest inflation data. Consumer prices rose 0.2% in August, bringing the annual inflation rate to 2.5%, beyond the 2.6% estimate and its lowest level since 2021.
Meanwhile, core inflation came in higher than expected month over month, rising 0.3% compared to analyst estimates of 0.2%, which is putting Wall Street on edge ahead of the Federal Reserve's September interest rate decision next week.
Continue reading for more on today's market, including:
5 Things You Need to Know Today
- The Cboe Options Exchange (CBOE) saw over 1.2 million call contracts and 877,783 put contracts exchanged on Tuesday. The single-session equity put/call ratio rose to 0.69 and the 21-day moving average remained at 0.65.
- Novo Nordisk A/S (NYSE:NVO) stock is up 1.9% premarket, after trial data for its obesity drug, Liraglutide, was found safe and effective for children as young as six. Year to date, the equity is up 25.5%.
- Bank of America Corp (NYSE:BAC) stock is down 1% before the bell, after Warren Buffett's Berkshire Hathaway disclosed the offloading off more of BAC shares, bringing its stake down to 11%. The equity is up 16.7% in 2024.
- Shares of Dave & Buster's Entertainment Inc (NASDAQ:PLAY) are up 11.5% in electronic trading, after the company beat second-quarter earnings estimates, though revenue came in lower than expected. Looking to bounce off two-year lows, PLAY is down 44.5% year to date.
- What's out this week aside from inflation data.
Nikkei Marks 8th-Straight Loss
Asian markets were lower on Wednesday, after Bank of Japan (BoJ) board member Junko Nakagawa said there could be more interest rate hikes if inflation and economic data remain level with outlooks. Meanwhile, unemployment in South Korea dropped to 2.4% for August, its lowest reading on record. Japan’s Nikkei fell 1.5%, tallying its eighth-straight loss. China’s Shanghai Composite shed 0.8%, Hong Kong’s Hang Seng lost 0.7%, and South Korea’s Kospi dropped 0.4%.
Investors in Europe are keeping a close eye on U.S. inflation data, as well as numbers that indicated a flat economy for July in the U.K. A lift in retail and tech stocks are giving markets a boost, though, with London’s FTSE 100 last seen up 0.2%, while France’s CAC 40 is 0.3% is higher, and Germany’s DAX rises 0.5%.