Stocks look set for a lower open Wednesday after April’s inflation reading came in much hotter than expected.
Dow Jones Industrial Average futures have dropped 136 points, or 0.4%, while S&P 500 futures have fallen 0.8%, and Nasdaq Composite futures have declined 1.6%. The 10-year Treasury yield has risen 0.03 percentage point to 1.654%.
Fears that inflation will run hot enough to force the Federal Reserve to lift interest rates sooner rather than later are weighing on the equity market after the consumer price index in the U.S. came in at 0.8% month-over-month, beating estimates for 0.2%.
Rising prices can weigh on corporate profit margins if companies are unable to pass the costs on to consumers. They also can impact stock valuations, which tend to be lower when inflation is high. Tech stocks, in particular, are vulnerable because of their high valuations and the amount of growth expected in the future.
Here are five stocks making moves in Wednesday’s premarket action:
Wendy’s (WEN) stock rose 5% after reporting a profit of 20 cents a share, beating forecasts for 15 cents a share, on sales of $460 million, above expectations for $445 million.
DraftKings (DKNG) stock gained 1% after getting upgraded to Hold from Sell at Berenberg.
Novavax (NVAX) stock dropped 3% after getting downgraded to Neutral from Overweight at JPMorgan.
Dollar General (DG) stock dropped 1% after getting downgraded to Sector Perform from Outperform at RBC Capital Markets.
NortonLifeLock (NLOK) stock gained 1.6% after getting upgraded to Buy from Underperform at Bank of America.
Write to Jacob Sonenshine at [email protected]
