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US pre-open: Stocks seen lower ahead of inflation data

By Michele Maatouk

Date: Wednesday 14 Nov 2018

US pre-open: Stocks seen lower ahead of inflation data

(Sharecast News) - US stocks looked set for a slightly weaker open on Wednesday as investors eyed the latest reading on inflation and earnings from the likes of Macy's and Cisco.
At 1230 GMT, Dow Jones Industrial Average and S&P 500 futures were down 0.1%, while Nasdaq futures were off 0.3%.

James Hughes, chief market analyst at AxiTrader, said: "Wall Street may have rallied hard in the wake of last night's close, but the market is finding no success in sustaining this upside with fears over the collapsing oil price once again being seen as key in driving sentiment.

"There are wider problems afoot however - last night's US budget deficit grew even wider than had been expected, Japanese GDP missed expectations, interest rates are expected to continue rising and Europe faces a series of key political tests that could have a damaging impact on investment and in turn consumption."

Investors in the US will also be looking to developments across the pond as UK Prime Minister Theresa May has called a Cabinet meeting for 1400 GMT to see if she can get backing for the draft Brexit deal she has agreed with the EU.

The deal is understood to include plans for a solution to a hard border in Ireland by introducing a UK-wide customs backstop plan which would keep Britain in a customs union with the EU until a more permanent solution is agreed.

In corporate news, Snapchat parent Snap Inc was likely to be in focus after it said regulators are investigating allegations that it did not make proper disclosures to investors related to its IPO.

"While we do not have complete visibility into these investigations, our understanding is that the DOJ is likely focused on IPO disclosures relating to competition from Instagram," a Snap spokesman said in a statement.

Results are due from Macy's and Blue Apron ahead of the bell, while Cisco is slated to report after the close.

On the data front, the consumer price index for October is at 1330 GMT. Hughes expects the data to show further growth.

"Last week's consumer sentiment readings remain upbeat despite the slowing economic backdrop so again an upbeat reading here will validate those calls for a final Federal Reserve rate hike before the year is out - with the prospect of yet more to come in the New Year," he said.


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