Stock futures inch lower as investors look ahead to key inflation readings due this week: Live updates – CNBC
Source: CNBC
The S&P 500 posted a narrow gain on Tuesday as investors digested cautious commentary from Federal Reserve Chair Jerome Powell on interest rates. Concerns remain over the direction of the economy amid U.S. tariffs and the possible escalation of a global trade war.
The S&P 500 added 0.03% to end at 6,068.50, while the Nasdaq Composite lost 0.36% to close at 19,643.86. The Dow Jones Industrial Average gained 123.24 points, or 0.28%, to 44,593.65.
Apple gained 2.2% after The Information reported that the company is partnering with Alibaba to develop artificial intelligence features for iPhone users in China, curbing the market’s losses.
Powell earlier addressed the Senate Banking Committee and signaled the Fed does not need to move quickly to ease monetary policy.
“With our policy stance now significantly less restrictive than it had been and the economy remaining strong, we do not need to be in a hurry to adjust our policy stance,” Powell said in his first of two appearances this week on Capitol Hill. The central bank leader called the economy “strong overall” with a “solid” labor market, and said inflation is easing but remains above the Fed’s 2% goal.
Powell’s testimony — which will be followed by his appearance before the House Financial Services Committee on Wednesday — comes at a volatile time in Washington with President Donald Trump favoring tariffs against U.S. trading partners and with mixed messages coming from the administration on its approach to the Fed.
Trump on Monday signed new tariffs on all steel and aluminum imports to the U.S. The European Union responded by saying it would retaliate with levies of its own if the U.S. tacks on tariffs against products from the country bloc.
Investors are looking ahead to fresh inflation data in the form of the latest consumer price index report due out Wednesday, while the producer price index will go out on Thursday.
“I really think that the market is treading water, listening to Powell and waiting to see what tomorrow’s CPI will bring,” said Sam Stovall, chief investment strategist at CFRA Research. “I’m of the belief that investors are really going to push prices higher based on earnings growth, not expecting P/E multiple expansion,” Stovall added.
“The only concern regarding earnings could be that some of this quarter’s enthusiasm was the result of something being taken from next quarter’s estimates,” Stovall said. “The question we’re going to have to see in the months ahead is, did we indeed see an acceleration of ordering ahead of the expected Trump tariffs, and that gave an artificial boost to the appearance of an improving economy?”
The Dow Jones Industrial Average ended Monday’s trading session 123.24 points higher, or 0.28%, to close at 44,593.65. The S&P 500 gained 0.03% to end at 6,068.50, and the Nasdaq Composite slid 0.36% lower to close at 19,643.86.
The bull market is showing signs of slowing down, according to Fidelity director of global macro Jurrien Timmer.
“The trend remains up for U.S. equities, which leads me to conclude that this cyclical bull market remains in place at 28 months old,” Timmer said in an X post on Tuesday. “Yet only 62% of stocks are above their 200-day moving average, and the chart below shows a series of negative divergences, the likes of which tend to happen in the more mature stages of bull markets. It feels like late innings to me,” Timmer added.
Wells Fargo sees more room for Carvana to run ahead of its earnings report next week.
Analyst David Lantz hiked his price target on the car e-commerce platform by $35 to $310, reflecting a 15.8% upside over Monday’s close. Lantz also has an overweight rating on the stock.
Lantz acknowledged the stock has seen strong year-to-date performance with a gain of just over 32%. Still, the analyst said he is “favorable” into earnings, adding that the potential for outside share gains “looks intact.”
JPMorgan analyst Rajat Gupta also said he is optimistic on shares. He also has an overweight rating, with a price target of $350 that suggests the stock can rally 30.7%.
“In terms of setup for shares from here, despite material out-performance YTD and investor sentiment generally positive, we continue to see the risk-reward as attractive for a few reasons,” Gupta said.
During Tuesday’s trading session, 15 stocks in the S&P 500 were trading at new 52-week lows.
On the other hand, 12 stocks traded at their 52-week highs, including:
Shares of chipmaker Intel were 7% higher on Tuesday and on pace for their best day since Jan. 17, when the stock gained more than 9%.
Intel stock has slipped more than 51% over the past year.
The consumer discretionary sector was down 1.4% in afternoon trading, making it the worst performing of the 11 major groups, according to FactSet.
The sector was weighed down by Tesla and Marriott International, which were each lower by more than 5%.
This is the fifth straight negative session for Tesla and comes as CEO Elon Musk is spending a large portion of his time f
Read more: Click here