Stock futures rise slightly as Wall Street tries not to lose a week on high inflation

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Stock futures rose slightly on Thursday evening as Wall Street appeared to end the week on a positive outlook following a historic inflation report.

Futures contracts linked to the Dow Jones Industrial Average rose 51 points. The values ​​for the S&P 500 and Nasdaq 100 added about 0.2% and 0.3%, respectively.

The move on futures comes after the stock market appeared to weather its hottest inflation report in 30 years on Wednesday. The major indices are well on their way to a five-week winning streak, but are still within striking distance of their recent highs.

Randy Frederick, chief executive of trade and derivatives at the Schwab Center for Financial Research, said year-over-year comparisons with an unusual 2020 year and rising wages may have hurt the response to the inflation report and could allow the Federal Reserve to maintain its accommodative stance for longer than the price increase alone suggests.

“Big numbers make big headlines, and yes, prices are higher, but there are also wage increases that are about as high as inflation. So the inflation is definitely real, but the effects are not quite as severe as on humans. “Think about it,” said Friedrich.

The inflation report was the latest complication of economic data investors have had to work through for the past few weeks, with some professional investors looking optimistically towards 2022.

“I just think we’ve probably hit several supply chain disruptions, and I think the job market is going to break out a bit, as we saw in the job report last Friday,” said Brent Schutte, chief investment strategist at Northwestern Mutual.

There was more dramatic action in the bond market this week, with Wednesday’s inflation report causing a sharp reversal in the recent decline in 10-year government bond yields. The bond market was closed on Thursday for Veterans Day.

On Thursday, the tech-heavy Nasdaq Composite rose 0.5% while the S&P 500 climbed slightly. The Dow lost nearly 160 points, which was dragged down by Disney’s drop in earnings.

As of Thursday, the Dow was down 1.1% for the week while the S&P 500 and Nasdaq were down 1% and 1.7%, respectively.

After a busy week of earnings and economic data releases, Friday is relatively easy for investors. The preliminary readings on consumer sentiment for November and the September report on job vacancies and labor turnover will be released on Friday morning.

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