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Traders work on the floor of the New York Stock Exchange (NYSE), July 26, 2023.
Brendan McDermid | Reuters
S&P 500 futures were little changed Wednesday night as investors looked to extend November’s hot streak.
Futures tied to the broad-market index inched lower by 0.04%, while Dow Jones Industrial Average futures lost 13 points, or 0.04%. Nasdaq 100 futures slid 0.1%.
In after-hours action, shares of Cisco Systems dropped 11% after the company offered weak guidance for the current quarter and full fiscal year. Palo Alto Networks shed 5% after the cybersecurity company issued a dismal forecast on billings.
The moves follow a winning day on Wall Street as investors cheered the latest inflation data. The Dow added more than 160 points, finishing its fourth straight winning session with a gain of around 0.5%. The S&P 500 and Nasdaq Composite climbed about 0.2% and 0.1%, respectively.
October’s producer price index, a gauge of wholesale prices, slid 0.5%. That marked its biggest monthly decline since April 2020.
That came a day after the consumer price index remained flat for October, another encouraging sign for investors hoping the Federal Reserve has seen the path of inflation cool enough to stop hiking interest rates. Tuesday’s session brought the biggest gains for the S&P 500 and Nasdaq since April.
With November about halfway through, the S&P 500 is up more than 7% for the month, while the Dow has advanced nearly 6%. The Nasdaq has leapt 9.8% in the period.
These recent advances could be indicative of a longer term trend, said Barbara Doran, founder of BD8 Capital Partners. That’s because the recent inflation data can imply the Federal Reserve is done raising interest rates. The market being in a seasonally strong time historically is also a positive sign, she added.
“I think this has legs,” Doran said on CNBC’s “Closing Bell: Overtime.” “The elements are in place for this rally to continue.”
With the two inflation reports behind them, investors will turn focus to a crop of economic data on topics such as jobless claims, industrial production and the housing market due Thursday. They will also follow remarks expected from Fed officials including Cleveland President Loretta Mester and New York President John Williams at events throughout the day.
Investors will also watch for earnings reports from retail companies expected on Thursday. Macy’s and Walmart are slated to report before the bell, followed by Gap after the market closes.
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