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Stock futures fall after inflation report

Stock futures traded lower early Thursday morning after the latest CPI data showed inflation was still on the rise.

Futures contracts linked to the Dow Jones Industrial Average lost 64 points, or 0.2%. S&P 500 and Nasdaq 100 futures fell 0.2% and 0.28% respectively.

Shares of Bumble and Rivian jumped 10.38% and 5.58%, respectively, in extended trading on upbeat results for the latest quarter. Meanwhile, Disney shares fell more than 3% after hours despite strong earnings for its latest quarter. The company said Covid is still weighing on its theme parks in Asia.

In regular trading on Wednesday, the Dow Jones fell 326 points, or 1.02%. The S&P 500 slipped 1.65% and the Nasdaq Composite fell 3.18%.

The moves came as investors assessed the latest inflation data, which showed consumer prices in April jumped 8.3%, higher than expected and still near their highest. high level in 40 years of 8.5%. Analysts are mixed on whether the data suggests inflation has peaked.

While the market briefly turned positive at one point in the session, the S&P 500 at one point hit a fresh 52-week low and eventually closed at its lowest level of the year. The S&P 500 is more than 18% off its high and down more than 17% since the start of the year.

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Still, Fundstrat’s bull market Tom Lee remains bullish on equities. He said that if the market regains its balance “we are in a world of double-digit expected returns.”

“This week is interesting because the stock market declines have accelerated downwards, so the cascade is accelerating, but things that normally would support a cascading drop like yields or the VIX have not,” Lee told CNBC’s “Closing Bell: Overtime.” “The bond market is actually quite stable, even in the face of a hot CPI and the VIX is actually down.”

He noted that of the 16 times since 1940 when the market fell 16% over a four-month period, it was higher six months later in 12 of those events.

SoftBank is expected to report earnings Thursday morning before the bell. Affirm, Poshmark, and Toast are on deck after the bell.

In economic data, investors will be watching for the latest information on jobless claims, which will be released at 8:30 a.m. They are also eagerly awaiting new data on the Producer Price Index, which measures prices at the wholesale level.

Stock futures fall after inflation report

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