Here are the most important news, trends and analyzes that investors need to start their trading day:
1. Stock futures rose after Tuesday’s intraday reversal
Traders work on the floor of the New York Stock Exchange (NYSE) on October 25, 2021 in New York City.
Spencer Platt | Getty Images
US stock futures rose on Wednesday morning, following Tuesday’s intra-day reversal that saw key indicators end in red. The tech-heavy Nasdaq Composite and the S&P 500 both fell close to 0.3%, their third consecutive negative session. After the March consumer price index showed the largest annual growth since 1981, Wall Street initially rose to 2% and 1.3%, respectively, in hopes of staying at the top of inflation. The Dow Jones Industrial Average fell nearly 88 points, or 0.26. %, Leaving a previous gain of about 1.1%. All three indices closed below their 50-day and 200-day moving averages.
Bond yields tick high on Wednesday morning. The benchmark 10-year Treasury note yield traded about 2.75%. Prior to the release of CPI data on Tuesday, March, it reached a high of 2.82% from December 2018.
2. Wholesale inflation is expected to rise to 1.1% in March
On April 11, 2022, the price of gasoline for the least expensive grade at several gas stations in Washington, D.C., was close to $ 4.00 per gallon.
Chip Somodevilla | Getty Images
Dow Jones estimates that wholesale inflation jumped 1.1% month-on-month in March. The Labor Department released the report at 8:30 a.m. Wednesday, known as the producer price index. The expected 1.1% increase would be a big month-over-month gain from what happened in February, when wholesale inflation rose 0.8%. The so-called core PPI, which excludes food, energy and trade services, is expected to rise 0.5% per Dow Jones. In February, it rose just 0.2%.
After Tuesday’s consumer price report showed a headline gain of 8.5% compared to a year earlier, the data will offer another window into the US economy under inflationary pressures. Although PPIs are not as closely followed as CPIs, prices at the wholesale level can later affect what customers offer in the register.
3. Earnings season begins with JPMorgan, Delta Air Lines
Signed outside a Chase Bank branch in San Francisco, California on Monday, July 12, 2021.
David Paul Morris | Bloomberg | Getty Images
The earnings season begins earnestly on Wednesday morning, providing investors with a series of insights on the economy and consumer conditions.
JPMorgan, the largest US bank by assets, reported better-than-expected earnings and posted earnings per share of 2.63 for the first quarter. It also reported $ 524 million in injuries from market displacement related to sanctions on Russia, and CEO Jamie Dimon said in a prepared comment that he sees “significant” challenges ahead for the US economy.
The Atlanta-based carrier says it expects profits in the current quarter as shares of Delta Airlines pop up in pre-market trading. Booking and fare hikes are helping fuel costs rise. In its first quarter, Delta also reported a narrow-expected loss and top revenue estimates.
4. Bankers have reduced mortgage demand for 2022
New home in Sand Creek Silo by Century Community Housing Development in Antioch, California, USA on Thursday, March 31, 2022.
David Paul Morris | Bloomberg | Getty Images
Mortgage bankers have downgraded their demand outlook for 2022, as sharp rise in rates is putting further strain on purchasing power in the country’s housing market. The Mortgage Bankers Association expects total mortgage origin to be এই 2.58 trillion this year, after previously calling for 2.61 trillion. This will represent a 35.5% decrease compared to 2021. Due to the important role of the housing sector in the US economy, the recovery of the organization is noteworthy.
5. Biden called Russia’s actions in Ukraine “genocide.”
U.S. President Joe Biden comments on the Affordable Care Act and Medicaid on April 5, 2022 in the East Room of the White House in Washington, DC.
Mandel Engan | AFP | Getty Images
President Joe Biden said on two occasions on Tuesday night that Russia’s move in Ukraine “seems to be” a “genocide” to him, a proposal to characterize it for the first time since the war began. “I call it genocide because it has become clearer and clearer that Putin is only trying to erase the notion of being able to be Ukrainian,” Biden said. An adviser to the White House said Biden’s remarks did not mean a change in US policy towards Ukraine.
The United States is expected to provide an additional 750 million in military aid to Ukraine, Reuters reported, citing US officials familiar with the matter. An announcement could be made as soon as Wednesday, the news agency said.
– CNBC’s Christina Wilkie and Diana Alik contributed to this report.
– Sign up now To follow every stock move of Jim Kramer for the CNBC Investing Club. Follow broad market action like a pro on CNBC Pro.