Stock futures in the U.S. showed little movement on Wednesday night, as the recent post-election rally began to slow. Futures on the Dow Jones Industrial Average rose by a modest 7 points, while the S&P 500 futures remained near the flatline, and Nasdaq 100 futures slipped slightly by 0.04%.
In after-hours trading, CNH Industrial shares saw an 8% increase after Greenlight Capital’s David Einhorn announced at CNBC’s Delivering Alpha conference that he had taken a medium-sized position in the agricultural equipment company. Earlier in the regular session, the Dow gained 47.21 points, or 0.11%, while the S&P 500 rose by a slim 0.02%. Meanwhile, the Nasdaq Composite dipped by 0.26%.
Mixed Signals from Inflation and Market Rally
The markets are reacting to the October Consumer Price Index (CPI) data, which met expectations but underscored the persistent challenge the Federal Reserve faces in curbing inflation. Core CPI rose by 0.3% for the third month in a row, with a 12-month rate at 3.3%, indicating inflationary pressures remain a key concern. The post-election rally, which followed Donald Trump’s decisive victory, had pushed the Dow above 44,000 for the first time on Monday, with both the S&P 500 and Nasdaq Composite reaching new highs as well. However, investors are now debating if this rally has further to go.
Courtney Garcia, senior wealth advisor at Payne Capital Management, expressed optimism that there may still be room for the post-election rally to extend. With significant amounts of cash on the sidelines, as investors await more certainty in the market, she believes there are opportunities for growth in other sectors. Garcia noted that with fresh capital ready to enter the market, there are areas with strong potential for further gains.
Upcoming Economic Indicators and Key Events
Investors are keeping an eye on upcoming economic reports for further insights. The October Producer Price Index (PPI), scheduled for release on Thursday, is expected to reflect an uptick in inflation, with a consensus forecast for a 0.2% increase in producer prices over the past month. Excluding the more volatile food and energy categories, PPI is predicted to have risen by 0.3%, compared to a 0.2% increase in the prior month. Additionally, the retail sales report is due out on Friday, which will give investors another glimpse into the current state of consumer spending.
Federal Reserve Chair Jerome Powell is set to speak in Dallas, Texas, on Thursday. Powell’s comments could provide more clarity on the Fed’s stance regarding future rate hikes, especially in light of recent inflation data and economic indicators.
Noteworthy Market Movers in After-Hours Trading
Several companies made headlines in after-hours trading. CNH Industrial shares jumped nearly 8% after David Einhorn announced a medium-sized position in the company. Cisco Systems, however, saw its shares dip slightly by less than 1% despite reporting better-than-expected earnings. The tech company, headquartered in San Jose, California, reported adjusted earnings of $0.91 per share, with revenue totaling $13.84 billion, surpassing analyst expectations of $0.87 per share on revenue of $13.77 billion.
Market Futures Remain Steady into Thursday
U.S. stock futures remained relatively unchanged after the market closed on Wednesday, following the post-election rally. Dow Jones Industrial Average futures saw a small increase of 14 points, or 0.03%. The S&P 500 futures edged up by 0.01%, while Nasdaq 100 futures dipped slightly by 0.03%. Investors are closely monitoring these developments, as the outcome of key economic reports and statements from Federal Reserve officials could play a significant role in shaping market momentum in the coming days.
The overall sentiment is one of caution, with many investors remaining watchful for signals that could indicate the potential for continued growth or, conversely, a need for a more conservative approach amid inflationary pressures and the Federal Reserve’s ongoing battle against rising prices.
