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, +0.10% rose 47 points to 18,062, while those for the S&P 500 index ESM5, +0.05% added 3.8 points to 2,098.60. Futures for the Nasdaq-100 index NQM5, +0.07% rose 8.75 points to 4,446.75.
U.S. stocks finished slightly lower on Monday, erasing modest gains in the last 15 minutes of trade.
The dollar EURUSD, +0.01% also swung wildly, but the euro held its ground supported by stronger-than-expected German purchasing managers index data. European stocks SXXP, +0.06% 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, -20.55% shares were off 14% after the oil and gas company announced a secondary stock offering.
McCormick & Co. MKC, +3.14% will release results ahead of the market’s open.
Chesapeake Energy Corp. CHK, +4.32% rose 3.6%. The company cut its outlook for 2015 capital expenditure due to continued weak commodity prices.
Other markets: Hong Kong’s Hang Seng Index HSI, -0.39% fell after the Chinese factory data, while Japan’s Nikkei NIK, -0.21% broke a two-day winning streak with a 0.2% fall.
Oil prices CLK5, +1.58% 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, +0.38% was also rising as the dollar weakened.
