Stock futures fell slightly on Wednesday as investors awaited January’s consumer inflation report. Futures tied to the S&P 500 edged down 0.1%, while the Dow Jones Industrial Average lost 78 points, or 0.2%. Nasdaq 100 futures were 0.1% lower.
The consumer price index (CPI) report will be released at 8:30 a.m. ET. According to Dow Jones, headline inflation is expected to have grown 0.3% from the previous month and 2.9% from 12 months earlier. Concerns have been raised that even as specific categories may see disinflation going forward, tariffs could offset that.
However, the economy remains resilient, said Ed Yardeni, president of Yardeni Research. “We tend to focus on the macroeconomic policies, but the reality is that the rest of us working stiffs are doing an amazing job of keeping the economy going despite Washington,” he said Tuesday. My conclusion is, first of all, don’t let your politics get in the way when it comes to investing.
In addition to Wednesday’s CPI report, investors will watch testimony from Federal Reserve Chair Jerome Powell before the House Committee on Financial Services.
Powell testified Tuesday to the Senate Banking Committee that policymakers were in no hurry to make further interest rate cuts. Goldman Sachs is stepping aside on Swiss-based running apparel company On Holding. Analyst Richard Edwards downgraded shares to neutral from buy, citing the stock’s full valuation.
The stock has soared nearly 80% over the last 12 months. Edwards maintained his price target of $57 per share, which is 5.6% above Tuesday’s close price. In a research note on Tuesday, Edwards wrote, “We expect On’s brand momentum to remain robust over the medium term. “
However, he added that U.S. credit card growth points to below-consensus growth in the fourth quarter for direct-to-consumer businesses. “While this data is U.S. specific and we do not expect a miss to consensus expectations for On, we note that sportswear companies that have missed expectations, such as Nike, Puma, and Deckers, have seen significant share price declines recently,” Edwards added. Furthermore, competition in the running segment has strengthened, according to Edwards.
U.S.-traded shares fell 3% Wednesday during premarket trading. Asia-Pacific markets mostly rose Wednesday as investors digested U.S. President Donald Trump’s tariff impact on regional economies. Japan’s Nikkei 225 rose 0.42% to close at 38,963.70 after resuming trading following a holiday.
South Korea’s Kospi added 0.37% to end the day at 2,548.39, while the small-cap Kosdaq fell 0.59% to close at 745.18.
Investors anticipate key inflation data
Hong Kong’s Hang Seng was up 2.41% in its final hour of trade.
Mainland China’s CSI 300 added 0.95% to close at 3,919.86. India is slated to report its inflation data for January. The benchmark Nifty 50 was up 0.19%, while the BSE Sensex index was flat as of 1.30 p.m. local time.
Australia’s S&P/ASX 200 ended the day up 0.6% at 8,535.30. Orange juice futures were lower again Tuesday, marking their eighth consecutive negative session. OJ hit a low of 385.50 cents per pound, its lowest level since May 9, 2024.
This pullback comes despite futures reaching all-time highs in mid-December. Market observers are surprised by the recent downturn, given ongoing supply constraints in Florida and Brazil. On Tuesday, the USDA revised its Florida orange production forecast downward to 11.5 million boxes, 4% lower than the previous estimate and a 36% drop from last season.
According to Danny Munch, an economist at the American Farm Bureau Federation, three key factors may be driving the decline: First, orange juice prices have risen so high that consumers and food manufacturers may be shifting to alternatives, a classic case of demand destruction. Second, traders may believe that prices have peaked and production will eventually rebound. Lastly, a strong dollar and potential tariff concerns make imported orange juice relatively cheaper.
Check out some of the companies making headlines in extended trading:
– DoorDash: The food delivery stock traded nearly 6% higher after better-than-expected revenue for the fourth quarter. DoorDash reported revenue of $2.87 billion in its most recent quarter, while analysts forecast $2.84 billion. – Gilead Sciences: The biopharmaceutical stock advanced 4% after fourth-quarter results surpassed analysts’ estimates on the top and bottom lines.
Gilead notched adjusted earnings per share of $1.90 on revenue of $7.57 billion. Analysts were looking for earnings of $1.70 per share on revenue of $7.14 billion. Super Micro Computer: The server builder popped more than 4% even as the company slashed its fiscal 2025 full-year revenue guidance.
Super Micro now sees full-year revenue between $23.5 billion and $25 billion, while analysts called for $24.92 billion. On Tuesday, stock futures changed a little as investors looked at the January consumer price index report. Futures tied to the Dow Jones Industrial Average ticked down 7 points, or 0.02%.
S&P 500 futures slipped 0.02%, while Nasdaq 100 futures were 0.05% higher.
