Futures Move To The Upside Following Tamer-Than-Expected Inflation Data

(RTTNews) - After ending yesterday's choppy trading session modestly lower, stocks are likely to move to the upside in early trading on Wednesday. The major index futures are currently pointing to a higher open for the markets, with the S&P 500 futures up by 0.4 percent.

The futures advanced following the release of a closely watched Commerce Department report showing consumer prices rose by slightly less than expected in the month of August.

The Commerce Department said its personal consumption expenditures (PCE) price index increased by 0.3 percent in August following a revised 0.1 percent uptick in July.

Economists had expected prices to climb by 0.4 percent compared to the 0.2 percent increase originally reported for the previous month.

The report also said the annual rate of growth by the PCE price index came in at 3.4 percent in August, unchanged from a revised reading in July.

The annual rate of growth was expected to remain unchanged compared to the 3.7 percent growth originally reported for the previous month.

Excluding food and energy prices, the core PCE price index rose by 0.2 percent in August after inching up by a revised 0.1 percent in July.

Economists had expected core prices to rise by 0.3 percent compared to the 0.2 percent increase originally reported for the previous month.

The annual rate of growth by the core PCE price index came in at 3.0 percent in August, unchanged from a revised reading in July.

Economists had expected the annual rate of growth to remain unchanged compared to the 3.3 percent growth originally reported for the previous month.

Meanwhile, a separate report released by payroll processor ADP showed private sector employment in the U.S. jumped by more than expected in the month of September.

ADP said private sector employment shot up by 90,000 jobs in September after rising by a downwardly revised 36,000 jobs in August.

Economists had expected private sector employment to increase by 70,000 jobs compared to the addition of 38,000 jobs originally reported for the previous month.

Stocks showed a lack of direction throughout the trading session on Tuesday, with the major averages spending the day bouncing back and forth across the unchanged line following the weakness seen during the previous session.

The major averages eventually ended the day modestly lower. The Dow fell 131.59 points or 0.3 percent to 51,349.92, the Nasdaq edged down 22.84 points or 0.1 percent to 26,797.54 and the S&P 500 dipped 12.85 points or 0.2 percent to 6,760.84.

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Wednesday. Japan's Nikkei 225 Index jumped by 1.9 percent, while China's Shanghai Composite Index rose by 0.3 percent.

Meanwhile, the major European markets are turning in a mixed performance on the day. While the U.K.'s FTSE 100 Index is up by 0.2 percent, the German DAX Index is down by 0.2 percent and the French CAC 40 Index is down by 0.4 percent.

In commodities trading, crude oil futures are jumping $1.14 to $90.52 a barrel after plummeting $3.22 to $89.38 a barrel on Tuesday. Meanwhile, an ounce of gold is trading at $4,242.30, up $62.60 compared to the previous session's close of $4,179.70. On Tuesday, gold rose $11.30.

On the currency front, the U.S. dollar is trading at 156.80 yen compared to the 157.28 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is valued at $1.1367 compared to yesterday's $1.1340.