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Stock futures stable after 3-day winning streak for the Nasdaq

Traders work on the floor of the New York Stock Exchange (NYSE) on January 7, 2022 in New York City.

Spencer Platt | Getty Images

US equity futures were flat in overnight trading on Wednesday after the Nasdaq Composite rose for the third session despite a burning Consumer Price Index report.

Dow futures contracts rose only 20 points. S&P 500 futures gained 0.05% and Nasdaq 100 futures gained 0.04%.

Shares of homebuilder KB Home rose more than 6% after-hours trading after reporting better-than-expected earnings.

On Wednesday, major averages rose despite the heavy impression from the CPI inflation report. The Dow Jones Industrial Average jumped about 38 points and the S&P 500 added 0.3%. The Nasdaq Composite rose for the third day in a row, up 0.2%.

The December consumer price index, a key measure of inflation, rose 7%, according to the department’s Bureau of Labor Statistics. On a monthly basis, the CPI rose 0.5%. Economists expected the consumer price index to rise 0.4% in December and 7% year-on-year, according to Dow Jones.

The annual movement was the fastest increase since June 1982.

“Stocks rocked the sticker shock of the historically high inflation number, but that was also widely expected and unbelievably a non-event today,” said Ryan Detrick of LPL Financial. “What excites us is that the earnings season is fast approaching. We expect another strong performance from US companies, as it will also be an opportunity to stop focusing so much on the Fed and politics, but rather go under the hood and see how the economy is really doing. “

December’s producer price index, another measure of inflation, is then expected to be released on Thursday morning.

Still on the data front, the first jobless claims for the week ending January 8 will be released at 8:30 a.m. Economists polled by Dow Jones predict that 200,000 people have filed for unemployment, against 207,000 the previous week.

The fourth quarter earnings season kicks off this week with a report from several major banks Friday before the bell.

Delta Air Lines will report on Thursday morning. Wall Street expects Delta to post earnings per share and revenue to more than double the levels of a year ago.

“The stock market is of course still vulnerable in the short term to a poor PPI inflation report, but the earnings season is about to begin and given strong economic growth in the fourth quarter, expect more. evidence of continued strong corporate earnings to help ease Fed tightening and inflation fears, ”said Jim Paulsen, chief investment strategist for the Leuthold Group.

For the week, the S&P 500 and the Nasdaq are up 1.1% and 1.7% respectively. The Dow Jones has been up slightly since Monday.

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