U.S. September CPI and financial earnings are the focus tonight. U.S. stocks fell the previous day, with the Dow plunging from an intraday gain to a substantial loss, while Johnson & Johnson dropped sharply on sluggish growth in its medical-device segment.
The release of U.S. September CPI and earnings from major financial institutions will be the main focus tonight. U.S. markets fell the previous day, with the Dow rising as much as 466 points before ending down approximately 180 points, while the Nasdaq also traded slightly lower. Markets were unsettled between elevated expectations and uncertainty over earnings, and declines in memory-related stocks were also a drag.
September CPI is expected to rise approximately 3.6% year on year, and the effects of higher crude oil prices and other factors could reignite inflation concerns. This could affect expectations for the Federal Reserve's monetary policy, while Bank of America, Morgan Stanley and others are scheduled to report before trading begins.
Although markets also expect strong earnings, there is a risk that profit-taking selling will lead the market. Other scheduled events include the Beige Book, the MBA mortgage applications index, and speeches by Federal Reserve Vice Chair Bowman and Richmond Fed President Barkin. Market developments therefore warrant attention.
Johnson & Johnson fell sharply, down approximately 5.73%, as sluggish growth in its medical-device segment weighed on the shares. Bank of America, State Street, Morgan Stanley, BlackRock and others are scheduled to announce earnings before the market opens.