Live stock market news: January 11, 2023

U.S. stock futures soared ahead of the open on Wednesday as Wall Street counted up to a crucial reading of inflation and big bank earnings later this week.

Futures linked to the S&P 500 (^GSPC) rose 0.3%, while futures on the Dow Jones Industrial Average (^DJI) added 60 points, or 0.2%. Contracts on the technology-heavy Nasdaq Composite (^IXIC) also rose about 0.3%.

US Treasury yields pared their rise from the previous session, with the benchmark 10-year note falling below 3.6%. The US dollar index also fell.

Wells Fargo (WFC) was among the companies under watch in early trading after the megabank announced on Tuesday night that it would reduce its home loan business. The move by Wells Fargo, once a top mortgage lender, comes amid a slowing housing market as sky-high interest rates have dampened home purchases and refinance deals. The share price changed little.

Shares of Party City (PRTY) jumped nearly 27% premarket after rising 118% on Tuesday after Bloomberg News reported the company had sought funding for a potential Chapter 11 bankruptcy, citing people with knowledge preparations.

Embattled retailer Bed Bath & Beyond (BBBY) also soared again a week after announcing that the company was considering bankruptcy due to financial difficulties. The stock meme jumped 25% before market after rising more than 50% in the previous two sessions.

Shares of Coinbase (COIN) fell 4% premarket following a Bank of America downgrade to Underperform from Neutral after the company announced on Tuesday that it would cut nearly 1,000 jobs as part of a a restructuring plan.

A trader works on the floor of the New York Stock Exchange (NYSE) in New York, U.S., January 5, 2023. REUTERS/Andrew Kelly

A trader works on the floor of the New York Stock Exchange (NYSE) in New York, U.S., January 5, 2023. REUTERS/Andrew Kelly

The drumbeat is growing louder for the December Consumer Price Index (CPI) on Thursday morning. Economists expect the headline CPI to have risen 6.5% from a year earlier last month, according to consensus estimates from Bloomberg. If true, the reading would mark another drop from the 7.1% increase seen in November.

The report is likely to influence bets on whether the Federal Reserve will raise interest rates by 0.25% or 0.50% at the end of its next meeting on February 1, while offering hints of likely rate hikes at subsequent meetings.

The latest economic forecast from the Fed’s December meeting showed officials expecting its key overnight rate to rise to 5.1% in 2023.

Several Federal Reserve officials, including San Francisco Fed Chair Mary Daly and Atlanta Federal Reserve Chair Raphael Bostic, said this week that rates are likely to go above 5%. And (JPM) CEO Jamie Dimon predicted in an interview with Fox Business Network that aired Tuesday that rates could hit 6%.

However, DataTrek’s Nicholas Colas points to a “clearly dovish” tilt in fed funds futures expectations since the start of 2023. 7 percentage points.

“Markets are bluntly and decisively ignoring the Fed’s rate guidance, less than a month after it was released,” Colas wrote in a note. “Instead, futures — and by extension, stock markets — expect the Fed to set rates at year-end within 25 to 50 basis points of their current level. .

Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc

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