US market pushes higher as investors prepare for inflation data

US stocks traded higher Wednesday, with investors awaiting the release of fresh US inflation data and earnings.

The S&P 500 gained 0.57 per cent to end at 4,783.45, while the Dow Jones industrial Average added 170.57 points, or 0.45 per cent, to close at 37,695.73. The Nasdaq Composite advanced 0.75 per cent to settle at 14,969.65.

Intuitive Surgical and Lennar pulled the broad market index higher, gaining 10.3 per cent and 3.5 per cent, respectively. Intuitive increased its procedure growth outlook for fiscal year 2024 after the market close on Tuesday, when Lennar had also announced an increase to its annual dividend.

Investors await the latest consumer price index report slated for release Thursday. Economists polled by Dow Jones expect CPI rose 3.2 per cent year over year in December.

Investors will look through the reports for clues on when the Federal Reserve may start cutting rates. Some of those expectations have been dialled back in recent days, although the odds hover at around 64 per cent, according to CME Group FedWatch tool.

Earnings heats up Friday with results from major financial heavyweights including JPMorgan Chase and Bank of America, along with UnitedHealth and Delta Air Lines.

Overall, US sectors were mixed overnight. Communications was the best performer overnight, followed by Tech and Consumer Discretionary. Energy was the worst performer.

The US Securities and Exchange Commission is expected to announce its decision on bitcoin exchange-traded funds (ETFs) today, while the Chicago Board Options Exchange plans to launch eight new ETFs on January 11. In anticipation of this decision, companies are intensifying competition by reducing fees on their proposed bitcoin ETFs to attract investors, with BlackRock lowering fees on its iShares ETF and offering an introductory rate of 0.12 per cent for the first 12 months or the first $5 billion in assets.

The SPI futures are pointing to a 0.17 per cent rise.

Currency

One Australian dollar at 8:40 AM was buying 67.00 US cents.

Commodities

Gold has lost 0.2 per cent. Silver has lost 0.16 per cent. Copper has gained 0.75 per cent. Oil has lost 1.33 per cent.

Figures around the globe

European markets closed mixed yesterday. London’s FTSE lost 0.42 per cent, Frankfurt gained 0.01 per cent, and Paris closed 0.01 per cent lower.

Turning to Asian markets, Tokyo’s Nikkei gained 2.01 per cent, Hong Kong’s Hang Seng lost 0.57 per cent and China’s Shanghai Composite closed 0.54 per cent lower.

Yesterday, the Australian share market closed 0.69 per cent lower at 7,468.46.

Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap.

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