Stock futures fell Thursday as traders digest another hot inflation report along with jobless claims showing the economy is holding up amid the Federal Reserve's rate hikes.
Futures linked to theDow Jones Industrial Average shed 186 points, or 0.54%. S&P 500 futures dipped 0.81% and Nasdaq-100 futures fell 1.05%. Earnings beats sent some shares higher - Roku surged 12% in premarket trading, Cisco added more than 3% and Hasbro ticked 1% higher.
January's producer price index, another inflation measure, rose 0.7% on the month while economists surveyed by Dow Jones expected a 0.4% increase.
Stocks closed slightly higher Wednesday even after a stronger-than-expected January retail sales report suggested the Federal Reserve may have further to go in its efforts to tame inflation. TheDow Jones Industrial Average rose 38.78 points, or 0.11%, and theS&P 500 climbed 0.28%. Meanwhile, theNasdaq Compositenotched its third straight day of gains, rising 0.92%.
For some market observers, that suggested stocks could have more room to run from here — even after their strong start to the year.
"The Fed is saying that they're going to be hawkish, but the technicals are saying this rally is in, and I really don't think we're going to retest those October lows anymore, because we've hit some really important technical supports," Greene said.
Wall Street is expecting further economic insight from a slew of reports Thursday. For starters, another inflation gauge will be out in the morning,the January producer price index. Dow Jones estimates are calling for a rise of 0.4%, compared to December's decline of 0.5%.
Weekly jobless claims data, as well as January's housing starts report, are also due Thursday.