Dow futures flat, CPI looms, Q4 earnings season begins

Investing.com - US stock futures were trading in a tight range during Wednesday's evening deals as Wall Street braces for incoming inflation data and the kick-off of the fourth-quarter earnings season.

By 6:30 pm ET (11:30 pm GMT) Dow Jones Futures and S&P 500 Futures were flat while Nasdaq 100 Futures ticked 0.1% higher.

In after-hours trading, KB Home (NYSE:KBH) declined 2% after reporting results for the fourth quarter. EPS and revenue beat consensus but guidance failed to impress investors.

Richardson Electronics Ltd (NASDAQ:RELL) declined 9% after it reported second quarter losses of $0.13 per share, versus expected earnings of $0.01 per share. Revenue came in at $44.13 million versus $52 million.

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The previous trading session concluded on a winning note, with all three major indices posting gains. The S&P 500 increased by 0.6%, the NASDAQ Composite rose by 0.8%, and the Dow Jones Industrial Average advanced by 0.5%.

Investors are now shifting their focus towards the consumer price index (CPI) report for December, which is expected to be released on Thursday morning. Economists surveyed by Dow Jones anticipate a 0.2% rise in the December CPI, which translates to a 3.2% increase on a year-over-year basis.

The upcoming inflation data is set to play a crucial role in shaping market movements, potentially providing insights into the Federal Reserve's effectiveness in curbing price increases through its tightening measures. The results could challenge the market's expectation of six rate cuts in 2024, contrasting with the central bank's prediction of three cuts this year.

In other developments, the U.S. Securities and Exchange Commission (SEC) approved rule changes on Wednesday, paving the way for the creation of Bitcoin exchange-traded funds (ETFs). This eagerly awaited decision is set to provide investors with broader access to the leading cryptocurrency. Following the announcement, Bitcoin experienced a slight drop, while Ether saw an increase.

Investors are also keenly observing the onset of the fourth-quarter earnings season, with banking heavyweights Bank of America (NYSE:BAC) and JPMorgan Chase (NYSE:JPM) slated to report their results.