Wall Street set for mixed open after strong inflation data

imageStock Markets17 minutes ago (Oct 13, 2021 09:06AM ET)

(C) Reuters. Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., October 12, 2021. REUTERS/Brendan McDermid

By Devik Jain

(Reuters) -Wall Street was set for a mixed open on Wednesday as a solid rise in monthly consumer prices took the shine off stronger-than-expected earnings from JPMorgan (NYSE:JPM) and BlackRock.

A Labor Department report showed consumer price index rose 0.4% last month after climbing 0.3% in August. Economists polled by Reuters had forecast the overall CPI to rise 0.3%.

The data comes amid a surge in the costs of energy products and could cast doubts on the Federal Reserve’s view that high inflation is transitory.

“Inflation is strong, and a little worrisome. But, it is not unexpected given what has been going on in the marketplace between higher energy costs, supply chain problems and labor shortages,” said Rick Meckler, partner at Cherry Lane Investments in New Vernon, New Jersey.

JPMorgan inched higher in premarket trading after its third-quarter earnings beat estimates, helped by global dealmaking boom and release of more loan loss reserves in signs of an improving economy.

Its peers Bank of America (NYSE:BAC), Citigroup (NYSE:C), Wells Fargo (NYSE:WFC) and Morgan Stanley (NYSE:MS) will report results on Thursday, while Goldman Sachs (NYSE:GS) will publish earnings on Friday.

The banking sub-index had hit a record high on Tuesday and has gained nearly 35.3% so far this year.

BlackRock Inc (NYSE:BLK) rose 1.4% after the world’s largest money manager beat third-quarter profit estimates as an improving economy helped boost its assets under management, driving up fee income.

Analysts expect corporate America to report strong profit growth in the third quarter at a time when worries about supply chain problems and higher prices are affecting businesses emerging from the pandemic.

Focus is now on the minutes of the Fed’s September policy meeting, due later in the day, for signals that the days of crisis-era policy were numbered.

At 08:50 a.m. ET, Dow e-minis were down 61 points, or 0.18%, S&P 500 e-minis were down 4.75 points, or 0.11%, and Nasdaq 100 e-minis were up 11 points, or 0.08%.

Meanwhile, the Democratic-controlled U.S. House of Representatives gave final approval to legislation temporarily raising the government’s borrowing limit to $28.9 trillion, averting a debt default later this month.

Mega-caps growth names including Facebook Inc (NASDAQ:FB), Amazon.com Inc (NASDAQ:AMZN), Google-parent Alphabet (NASDAQ:GOOGL) Microsoft Corp (NASDAQ:MSFT), and Tesla (NASDAQ:TSLA) rose more than 0.4% each.

Among stocks, Apple Inc (NASDAQ:AAPL) fell 0.9% after a report said the iPhone marker was planning to cut production of its iPhone 13 by as many as 10 million units due to the global chip shortage.

Monster Beverage (NASDAQ:MNST) slipped 2.1% after Jefferies (NYSE:JEF) downgraded the beverage maker’s stock to “hold” from “buy”.

Chipmaker Qualcomm (NASDAQ:QCOM) Inc gained 1.5% on a new $10 billion stock buyback plan.

Wall Street set for mixed open after strong inflation data

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