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Stock index futures pointed to a slightly higher open Wednesday.
S&P futures (SPX) +0.2%, Nasdaq 100 futures (NDX:IND) +0.2% and Dow futures (INDU) +0.3% were higher.
A fairly empty economic calendar means trading could be cautious a day before the latest retail inflation numbers. A cool December CPI would buttress expectations that the Fed can downshift to a 25-basis-point hike at its next meeting.
“Consumer durable goods prices caused the 2021 transitory inflation, when US consumers discovered that without a 102-inch television in every room of their home, life was not worth living,” UBS’ Paul Donovan wrote. “As that surge in demand faded, consumer durable goods prices have experienced dramatic disinflation.”
Rates are easing after a rise in the previous session. The 10-year Treasury yield (US10Y) fell 4 basis points to 3.57% and the 2-year yield (US2Y) was down 3 basis points to 4.23%.
The Treasury will auction $32B in 10-year Notes this afternoon.
“It will be intriguing to see how the US 10yr auction goes today,” ING said. “The 3yr auction yesterday saw stellar demand, but that is to be expected as that’s a value part of the curve given the extreme inversion.”
“The 10yr is a different proposition. It requires investors to believe that market rates are set to fall, else why not buy shorter dates at a higher running yield?”
Among active stocks, WWE is popping after Vince McMahon resumed chairmanship of the company.
