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Sep 16, 2016

U.S. Stock Market Future Indications: U.S. Stocks Set for Losses With Key Inflation Data Ahead

Sara Sjolin
Wall Street was facing a downbeat end to the week on Friday, with investors staying on the sidelines ahead of inflation data, seen as a factor in the Federal Reserve’s interest rate deliberations.
Futures for the Dow Jones Industrial Average YMZ6, -0.28%  lost 49 points, or 0.3%, to 18,066, while those for the S&P 500 index ESZ6, -0.30%  dropped 6.15 points, or 0.3%, to 2,131.50. Futures for the Nasdag-100 index NQZ6, -0.22%  gave up 11 points, or 0.2%, to 4,802.75.
On Thursday, U.S. stocks finished higher as an Apple Inc.-inspired AAPL, +3.40%  rally in the tech sector helped to lift the broader market.
“As markets increasingly consolidate, it appears as though traders are now just preparing for the FOMC and BOJ meetings next week,” said Richard Perry, market analyst at Hantec Markets, in a note.
The U.S. Federal Open Market Committee and the Bank of Japan both wrap up their policy meetings on Wednesday next week. The BOJ is seen as easing policy slightly, while the Fed is widely expected to keep rates on hold. The CME FedWatch tool is currently showing a 12% probability of a rate hike at the Sept. 20-21 meeting.
There are no Fed speakers ahead of the meeting, as the central bank is in its blackout period.
“Perhaps the final game-changer could be U.S. CPI inflation, released [premarket Friday]. But once more, there is little expectation of any pick-up that would shout out for a rate hike,” Perry said.
Economic docket: The inflation data for August are due at 8:30 a.m. Eastern Time, and they are expected to show consumer prices rose 0.1% month-on-month. Core inflation — which strips out volatile items such as energy and food prices — is forecast to come in at 0.2%.
A reading on consumer sentiment for September is due at 10 a.m. Eastern, followed by data on household net worth for the second quarter at noon.
See: MarketWatch’s economic calendar
Thursday’s stream of data painted a mixed picture of the economy, with retail sales falling more than expected, but the Philly Fed index jumping more than forecast.
Movers and shakers: Shares of Apple slipped 0.5% ahead of the bell on Friday, following a 3.4% gain on Thursday to their highest level in a year. The tech giant started selling its new iPhone 7 on Friday.
Oracle Corp. ORCL, +1.52%  could also be active after the enterprise software company late Thursday reported profit and revenue below forecasts.
U.S-listed shares of Deutsche Bank AG DB, +1.65%  slumped 7.5% after the U.S. Justice Department asked the German lender to pay as much $14 billion to settle probes into its mortgage in the run-up to the financial crisis.
Novavax Inc. shares NVAX, +0.36%  plummeted 81% premarket after the vaccine company late Thursday said one of its lung infection vaccines did not meet endpoints in a late-stage clinical trial.
Other markets: Stocks in Asia ended higher, as Apple suppliers got a boost. European markets were mostly lower, with the Stoxx Europe 600 index SXXP, -0.29%  down 0.3%.
Oil futures slumped CLV6, -1.28% LCOX6, -1.40%  as traders braced for an increase in oil exports from Libya and Nigeria. The dollar DXY, +0.18%  rose against most other major currencies, adding pressure on gold GCZ6, -0.15%  and other metals markets.