US stock market opened lower today as seen from major index futures, ahead of the inflation data. Also, against most major currencies, the dollar saw modest losses. In the bond market, yields dropped during morning trade as investors are shifting their attention from the Federal Reserve’s plans to hike interest rate.
The S&P 500 index slid 0.40% to 2,645.44, Dow 30 tumbled 0.35% to 24,514.96 and Nasdaq dropped 0.20% to 6,967.54. Elsewhere, shares at Asian markets ended broadly higher on Tuesday, while European stocks are trading lower.
On February 12, US ended sharply higher, with Dow closing higher at 1.7% to 24,601.27, Nasdaq rising 1.6% to 6,981.96 and the S&P 500 jumping 1.4% to 2,656.
Over the past week, the likelihood of higher interest rates kept markets on the edge. All the three major indexes ended the week more than 5% down despite closing higher on February 9.
Investors are anticipating a stronger-than-expected US inflation data, which is due on February 14. The markets fear the data may cause another sell-off. The consumer price index for the month of January is predicted at 1.9% year-on-year, down from 2.1% a year ago.
Meanwhile, President Donald Trump has proposed a $4.4 trillion Federal budget that could nearly double the deficit from 2017 and increase about $7 trillion over the next decade. Investors expect the Congress to enact the budget in the current form, especially with its focus on deep cuts in social programs.
On the corporate front, PepsiCo Inc. posted a loss for the fourth quarter due to $2.5 billion in expenses related to the tax reform. The company guided 2018 core EPS ahead of street consensus, while expecting organic revenue growth to be in line with last year. PepsiCo announced a new share repurchase program for buyback of up to $15 billion of its common stock.
On the trading front, AmerisourceBergen Corp. shares climbed more than 9% after a takeover bid from Walgreens Boots Alliance Inc., according to the Wall Street Journal. Shares of Patterson Companies Inc. slumped more than 7% in the early trade.
AmerisourceBergen Corp. shares climbed more than 9% after a takeover bid from Walgreens Boots Alliance Inc. Shares of Patterson Companies Inc. slumped more than 7% in the early trade.
Cardinal Health Inc. lost more than 3% after a report from Columbus Business First stated that the healthcare services company is now facing over 350 opioid lawsuits. A CNN report stated Amazon.com Inc. is laying off hundreds of jobs from its Seattle headquarters and some global teams.
Crude oil future is down 1.20% to $58.58. Gold is trading up 0.07% to $1,327.30 and silver is down 0.48% to $16.49. On the currency front, the US dollar is trading down 0.93% at 107.68 yen. Against the euro, the dollar is up 0.56% to $1.2359. Against the pound, the dollar is up 0.42% to $1.3895.
Benchmark stock indexes pared their recent gains early this week amid elevated inflation concerns, but regained a part of the momentum later aided by recovery in tech stocks. The Dow
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