Investing.com News Update

Futures on Wall Street are ticking down ahead of the US inflation reading and multiple corporate earnings reports.

Economists predict that headline price growth has eased closer to the Federal Reserve's 2% target level in September.

Elsewhere, minutes from the Fed's meeting last month show that a "substantial" majority of members supported a 50-basis point interest rate cut, although there were reservations about larger reductions.

1. Futures Lower

US stock futures mostly edged lower on Thursday as investors tread cautiously ahead of new economic data and corporate earnings.

By 03:30 ET (07:30 GMT):
– Dow futures down 26 points (0.1%)
– S&P 500 futures down 7 points (0.1%)
– Nasdaq 100 futures down 27 points (0.1%)

Main Wall Street averages ended the previous session positively, buoyed by the Fed’s September meeting minutes.

Shares of Alphabet (NASDAQ:GOOGL) have receded after the US Department of Justice signaled it might seek to break up parts of Google's search business.

2. CPI Ahead

Markets will be analyzing new inflation data on Thursday essential for the Fed’s policy decisions.

Economists expect the consumer price index (CPI) to have slowed to 2.3% annual growth in September, down from 2.5% in August. Month-on-month, it is projected to decline to 0.1% from 0.2%.

Core CPI, excluding volatile items like food and fuel, is predicted to remain at 3.2% annually, easing slightly to 0.2% monthly.

First-time unemployment benefit claims are anticipated to rise to 231,000 from 225,000, influenced by Hurricane Helene and strikes at Boeing (NYSE:BA).

After a robust jobs report last week, hopes rise for the Fed to achieve a "soft landing" in the economy without labor market fallout.

3. Fed Minutes Reveal Support for Cut

Minutes from the Fed's latest meeting reveal that a "substantial majority" favored a half-point interest rate cut.

However, some members expressed hesitation, with one member advocating for a more traditional quarter-point cut.

Policymakers agreed that the 50-basis point reduction doesn’t dictate future rate paths. Traders see an 85% chance of another 25 basis point cut in November.

4. Delta Air Lines to Report

US airlines commence third-quarter earnings this week, starting with Delta Air Lines (NYSE:DAL).

Delta reported record revenue in June, though slightly below estimates. The CEO reassured investors of expected pricing power improvements from August.

Bank of America analysts believe seat growth capacity will be crucial when Delta reports on Thursday.

5. Crude Gains Amid Hurricane Milton

Oil prices rose Thursday as Hurricane Milton struck Florida, raising worries about supply disruptions.

By 03:31 ET:
– Brent up 0.7% at $77.09 per barrel
– U.S. crude (WTI) up 0.7% at $73.77 per barrel

Both contracts have dipped around 5% over the last two sessions. Hurricane Milton has increased gasoline demand in Florida, supporting crude prices while tensions over Middle East oil supplies remain high.