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The
Labor Department report, due at 8:30 a.m. ET, is expected to
show consumer prices climbed 0.5% in January, on a
month-over-month basis following a 0.1% rise in December.
However, on a year-on-year basis inflation is expected to have
eased to 6.2% last month from a 6.5% rise in December.
Markets have had an upbeat start to this year, driven by a
renewed interest in growth stocks that were left battered in
2022 as the Fed worked to bring steep prices under control.
However, the rally has stalled recently as signs of a
still-tight labor market and hawkish commentary from Federal
Reserve policymakers gave way to expectations of the U.S.
central bank staying hawkish throughout the year.
A Reuters poll showed that a majority of economists see two more
rate hikes in March and May with no cuts by year-end, bringing
the majority of private-sector forecasters in line with the
central bank's own projections and rhetoric.
Money market traders have priced in at least two more 25 basis
point rate hikes this year and see interest rates peaking at
5.18% by July. [0#FEDWATCH]
The yield on the U.S. 10-year Treasury notes slipped from
six-week highs hit in the previous session. [US/]
Megacap growth stocks such as Tesla Inc, Microsoft Corp, Apple
Inc and Amazon.com Inc rose between 0.1% and 1.3% before the
opening bell.
At 7:22 a.m. ET, Dow e-minis were up 38 points, or 0.11%, S&P
500 e-minis were up 10.5 points, or 0.25%, and Nasdaq 100
e-minis were up 51 points, or 0.41%.
Coca-Cola Co rose 0.8% after its strong full-year profit
forecast as the soda maker bets on resilient demand despite
multiple price hikes.
Marriott International Inc added 1.5% as the U.S.-based hotel
operator reported a surge in fourth-quarter earnings as it
benefited from strong travel demand.
Nearly 69% of more than half of the S&P 500 firms that have
reported results have beaten profit expectations, as per
Refinitiv on Friday. However, analysts expect fourth-quarter
earnings to fall 2.8% from a year earlier.
(Reporting by Johann M Cherian in Bengaluru; Editing by Maju
Samuel)
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