U.S. stock index futures slipped as investors awaited inflation data, a day after the S&P 500 index broke an eight day winning streak.
With Thursday a U.S. federal holiday for Veterans Day, the weekly weekly jobless benefit claims data will be published a day earlier than usual also.
How are stock-index futures trading?
On Tuesday, the Dow Jones Industrial Average DJIA fell 112 points, or 0.31%, to 36320, the S&P 500 SPX declined 16 points, or 0.35%, to 4685, and the Nasdaq Composite COMP dropped 96 points, or 0.6%, to 15887.
What’s driving the market?
Inflation will swing into focus for Wednesday, with U.S. October consumer prices expected to jump on both headline and core basis — by 0.6% and 0.4%, respectively. Annual CPI is expected to climb 5.8%, the highest level in 30 years, noted Neil Wilson, chief market analyst for Markets.com.
Those data will be released at 8:30 a.m. Eastern time, alongside weekly jobless claims, with the October federal budget due at 2 p.m. Eastern Time.
The CPI update comes a day after news of higher U.S. producer prices. Meanwhile, China on Tuesday reported its own factory gate prices surged 13.5% in October, the highest level since 1996. Consumer prices in the country rose 1.5% to a 13-month high, driven mainly by a jump in prices for food and fuel.
Investors will be waiting to see if stocks can recover after Tuesday’s losses halted an eight-day win streak for the S&P 500 and an 11-session winning run for the Nasdaq Composite.
“The decline in Tesla was a factor, but ultimately such a straight charge up will just run out of gas sooner or later. The look-ahead to inflation is maybe a factor so this needs to be assessed with today’s CPI print,” said Wilson.
Shares of Tesla TSLA tumbled 11% on Tuesday after a string of headlines that have rattled investors. Founder and CEO Elon Musk over the weekend asked Twitter followers if he should sell 10% of his stock, with the majority saying yes, and his brother Kimbal sold shares a day before that tweet.
After surging 42% in October, the electric-car maker’s stock has dropped 16% this week, and premarket gains of around 2% have eroded.
A Tesla rival will begin trading on the Nasdaq Wednesday, as Amazon.com AMZN -backed electric-vehicle maker Rivian Automotive Inc. is due to debut under the ticker symbol RIVN RIVN.
Rivian priced its initial public offering at $78 a share Tuesday evening, well above its expected range and valuing the company at $77 billion on a fully diluted basis.
The Walt Disney Co. DIS will report earnings after the close on Wednesday.