Dow futures were pointing to a higher open on Wednesday ahead of the publication of the inflation and retail sales data. At 10:40GMT, the blue-chip Dow futures rose 118 points, or 0.48%, S&P 500 futures advanced 10 points, or 0.39%, while the Nasdaq 100 futures gained 28 points, or 0.42%.
Traders will be keeping a close eye on the consumer price index (CPI) for January as they look for indications of inflation stateside in order to gauge support for the Federal Reserve’s plans to gradually increase interest rates.
Market analysts expect consumer prices to rise 0.3%, faster than December’s 0.1% increase, while core inflation is forecast to inch up 0.2%, a touch slower than December when consumer prices recorded their largest increase in 11 months.
At the same time Wednesday, the Commerce Department will publish data on retail sales for January. The consensus forecast is that the report will show retail sales increased 0.2% last month, its fifth consecutive advance. Core sales are forecast to gain 0.5%.
“Most certainly a higher CPI will be initially interpreted through US dollar strength, higher yields, and lower equities.”
On the technical charts, Dow30 is trading in the positive zone, just above the 9 day EMA. The RSI is placed at 45.37 and the MACD is below the signal line and ready to make a positive crossover above the signal line.
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