Mixed Futures Amidst Quiet Economic Schedule; Oil Prices Climb

U.S. index futures displayed varied behavior on Wednesday, following significant gains in the previous session that led the S&P 500 to close the day at a historic high, driven by consumer inflation data that met expectations. With a light economic schedule and the U.S. earnings season nearing its end, Dollar Tree (NASDAQ:DLTR) is scheduled to reveal its financial performance this morning while construction company Lennar (NYSE:LEN) is expected to announce its results at the end of the day.

At 06:27 AM, Dow Jones futures (DOWI:DJI) rose 22 points, or 0.06%. S&P 500 futures were stable, and Nasdaq-100 futures fell 0.12%. The yield on 10-year Treasury bonds was at 4.161%.

In the commodities market, West Texas Intermediate crude oil for April rose 1.30% to $78.57 per barrel. Brent crude oil for May rose 1.25% to nearly $82.94 per barrel. Iron ore traded on the Dalian Exchange fell 2.53% to $112.24 per metric ton.

Wednesday’s economic agenda has few highlights, but investors’ eyes will be on the U.S. Department of Energy’s oil inventory data release at 10:30 AM.

In the U.S. political scene, Joe Biden and Donald Trump secured enough delegates to become the presidential candidates for the Democratic and Republican parties, respectively. Thus, both political leaders will revisit the electoral showdown of 2020 in the race for the presidency, promising an intense rematch in the battle for leadership of the nation in the White House.

The Asia-Pacific stock markets had a mixed performance on Wednesday, reflecting a diverse set of regional influences. In China, the real estate sector returned to the spotlight, with new concerns about the housing crisis pressuring local stocks. The Shanghai Composite Index fell 0.40%, while the Shenzhen Composite experienced a slight contraction of 0.11%. This scenario was influenced by unfavorable news about real estate sales and financial difficulties of major developers, such as Country Garden, which failed to make a bond payment. In contrast, Tokyo’s market saw deeper losses, with investors attentive to speculations about possible adjustments in Japan’s monetary policy. Other markets in the region, like South Korea and Australia, managed to post gains.

European markets are on an upward trend, reflecting investors’ reaction to the latest U.S. inflation data and economic performance in the United Kingdom. The UK’s Office for National Statistics (ONS) reported that the UK’s GDP grew by 0.2% in January, in line with experts’ projections, indicating economic resilience amidst global challenges. However, the eurozone faced setbacks, with January’s industrial production declining by 3.2% compared to the previous month, a sharper contraction than the 1.5% forecasted by a Reuters survey.

Following declines in previous sessions, U.S. stock markets rebounded on Tuesday, with major indices closing higher. The positive movement was influenced by an inflation report that met expectations, generating optimism about a possible moderation in the Federal Reserve’s monetary policy. Oracle (NYSE:ORCL)stood out with strong performance following better-than-expected results, and the technology sector led the gains, while gold and related stocks retreated. The Dow Jones advanced 0.61%. The S&P 500 rose 1.12% and Nasdaq advanced 1.54%.

In terms of quarterly earnings, Dollar Tree (NASDAQ:DLTR), Zim Integrated Shipping Services (NYSE:ZIM), Arcos Dorados (NYSE:ARCO), Petco (NASDAQ:WOOF), Village Farms (NASDAQ:VFF), Williams-Sonoma (NYSE:WSM), Vera Bradley (NASDAQ:VRA), ADC Therapeutics (NYSE:ADCT), Silence Therapeutics (NASDAQ:SLN), Global Indemnity Group (NYSE:GBLI), among others, are scheduled to present their financial reports before the market opens.

After the close, numbers from UiPath (NYSE:PATH), SentinelOne (NYSE:S), ESS Tech Inc (NYSE:GWH), Vroom (NASDAQ:VRM), GrowGeneration Corp (NASDAQ:GRWG), Vaalco Energy (NYSE:EGY), FTC Solar (NASDAQ:FTCI), Anika (NASDAQ:ANIK), Quoin Pharmaceuticals (NASDAQ:QNRX), Lennar (NYSE:LEN), and more are awaited.