Stock Market Today: Trading Muted on Wall Street Ahead of Key US Inflation Report

Trading on Wall Street was muted early Wednesday ahead of the latest update on inflation coming out before markets open.

Futures for the S&P 500 edged less than 0.1% higher before the bell, while futures for the Dow were off less than 0.1%.

Wednesday’s update on consumer inflation and a report Thursday on inflation at the wholesale level will be the final big pieces of data the Federal Reserve will get before its meeting next week, where many investors expect this year’s third cut to interest rates.

The Fed has been easing its main interest rate from a two-decade high since September to take pressure off the slowing jobs market, after bringing inflation nearly down to its 2% target. Lower rates would help give support to the economy, but they could also provide more fuel for inflation.

Expectations for a series of cuts through next year have been a big reason the S&P 500 has set so many records this year.

In premarket trading Wednesday, Macy’s tumbled close to 10% after the department store chain reported a decline in third-quarter profits and sales as consumers continue to divert spending toward essentials amid elevated prices. Macy’s raised its annual sales forecast but lowered profit projections, citing an uncertain economic environment.

Shares of Kroger stabilized early Wednesday following a more than 5% decline late Tuesday when the supermarket giant’s proposed merger with Albertsons was nixed by judges in separate cases in Oregon and Washington. The grocery stores contend the merger would help them better compete with big retailers like Walmart, Costco and Amazon, but critics of the deal, including the Federal Trade Commission, said the tie-up would hurt competition.

Stitch Fix was a big gainer early Wednesday after the personalized fashion styling service posted a narrower loss than expected raised its full-year outlook. Its shares jumped 20% before the bell.

Dave & Buster’s tumbled 15% after the restaurant and arcade chain posted more than double the loss that Wall Street expected as sales fell.

In Europe at midday, Germany’s DAX was flat, while the CAC 40 in Paris and Britain’s FTSE 100 each gained 0.3%.

The Hang Seng in Hong Kong lost 0.8% to 20,155.05 while the Shanghai Composite index advanced 0.3% to 3,432.49 as Chinese leaders convened an annual planning meeting in Beijing that is expected to set economic policies and growth targets for the coming year.

Earlier this week, top leaders agreed on a “moderately loose” monetary policy during a meeting of the ruling Communist Party’s Politburo. That’s the first move in 10 years away from a more cautious, “prudent” stance. Readouts from state media hinted at more robust stimulus to support the world’s second-largest economy, but analysts remained skeptical about any dramatic measures.

South Korea’s market rose for a second straight day, recovering from last week’s political turmoil. The Kospi added 1% to 2,442.51.

Japan’s benchmark Nikkei 225 was little changed at 39,372.23 after data showed that Japan’s wholesale inflation in November rose 3.7% year-on-year, marking three consecutive months of increases and adding to pressure on the Bank of Japan to raise interest rates.

Japan’s central bank will hold a two-day policy meeting next week. Markets widely expect the bank to raise short-term interest rates from the current level of 0.25%.

Australia’s S&P/ASX 200 dipped 0.5% to 8,353.60.

U.S. benchmark crude oil gained 91 cents to $69.50 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the international standard, dipped 7 cents to $71.05 per barrel.

The U.S. dollar rose to 152.65 Japanese yen from 151.93 yen. The euro was trading at $1.0504, down from $1.0531.