By Anora Mahmudova and Barbara Kollmeyer, MarketWatch
Consumer prices rise in February for the first time in four
months
NEW YORK (MarketWatch) -- U.S. stock gyrated following the
release of inflation report, which showed an uptick in consumer
prices, but still pointed to a positive open on Wall Street
Tuesday.
Consumer prices index inched up in February, for the first time
in four months. Higher inflation is one of the metrics that the
Federal Reserve would like to see before committing to raising
interest rates.
Stock futures for the Dow Jones Industrial Average (YMM5) rose
47 points to 18,062, while those for the S&P 500 index (ESM5)
added 3.8 points to 2,098.60. Futures for the Nasdaq-100 index
(NQM5) rose 8.75 points to 4,446.75.
U.S. stocks finished slightly lower on Monday
(http://www.marketwatch.com/story/us-stocks-futures-pull-back-with-fed-speakers-home-sales-in-view-2015-03-23),
erasing modest gains in the last 15 minutes of trade.
The dollar (EURUSD) also swung wildly, but the euro held its
ground supported by stronger-than-expected German purchasing
managers index data. European stocks also pared earlier gains and
were nearly flat.
The upbeat news out of Germany acted as a counterbalance to a
report on Chinese factory activity, which showed a drop to an
11-month low, according to preliminary HSBC numbers. The data was
much weaker than expected, and they weighed on crude prices and
Asia stocks.
All eyes on CPI: U.S. consumer prices rose in February for the
first time in fourth months, as gas prices rebounded and the cost
of food and shelter increased again. The consumer-price index
climbed a seasonally adjusted 0.2%, the Labor Department said
Tuesday.
At 9 a.m. Eastern, the Federal Housing Finance Agency home price
index for January is due, while the Markit flash manufacturing PMI
is scheduled for release at 9:45 a.m. Eastern. New home sales for
February are coming at 10 a.m. Eastern.
Speaking at CityWeek in London on Tuesday, St. Louis Federal
Reserve President James Bullard said that the Fed's zero-rate
interest policy is no longer appropriate and that a rate hike this
summer wouldn't strangle the U.S. economic recovery. However, he
warned the reaction to the first rate hike may be 'violent',
because of mismatch in expectations.
Stocks to Watch: Whiting Petroleum Corp.(WLL) shares were off
14% after the oil and gas company announced a secondary stock
offering.
McCormick & Co.(MKC) will release results ahead of the
market's open.
Chesapeake Energy Corp.(CHK) rose 3.6%. The company cut its
outlook for 2015 capital expenditure
(http://www.marketwatch.com/story/chesapeake-energy-cuts-2015-capex-production-outlook-2015-03-23)
due to continued weak commodity prices.
Other markets:Hong Kong's Hang Seng Index
(http://www.marketwatch.com/story/japanese-hong-kong-stocks-retreat-after-weak-chinese-data-2015-03-24)
fell after the Chinese factory data, while Japan's Nikkei broke a
two-day winning streak with a 0.2% fall.
Oil prices (CLK5) shook off earlier losses to push higher, with
U.S. May crude up 85 cents to $48. 30 a barrel, though investors
are watching for supply data due later. Gold (GCK5) was also rising
as the dollar weakened.
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