Stock futures oscillated near the flat line Wednesday evening, with Wall Street preparing for the latest inflation data and the start of the fourth-quarter earnings season.
Futures tied to the
S&P 500 added 0.02%, while Nasdaq 100 futures ticked up 0.09%.Dow Jones Industrial Average futures were flat.
In after-hours action,
KB Home shares lost 2%.The homebuilder posted fourth-quarter results, issuing full-year revenue guidance of $6.4 billion to $6.8 billion, while analysts polled by FactSet called for $6.62 billion.
Stocks are coming off a winning session, with all three major indexes rising.The
https://www.cnbc.com/quotes/.SPX&__source=OTS%7Cfinance%7Cinline%7Cstory%7C&par=OTS&doc=107356972 added 0.57%, while the Nasdaq Composite gained 0.75%.The 30-stock Dow advanced 0.45%.
Investors are turning their attention toward December’s
consumer price index report due Thursday morning.Economists polled by Dow Jones predict that the CPI rose 0.2% in December, or 3.2% on a year-over-year basis.
The inflation data will be a key catalyst for markets and could provide evidence as to whether the Federal Reserve’s tightening measures have done enough to tamp down prices.
The results could also test the market’s expectations for six rate cuts in 2024, versus the central bank’s forecast for three cuts this year.
Elsewhere, the U.S.Securities and Exchange Commission on
Wednesday approved rule changes, opening the door for bitcoin exchange-traded funds.
The long-awaited move would expand investors’ access to the flagship crypto.Bitcoin ticked down after the news Wednesday evening, while ether climbed.
Money Report
Investors are also eyeing the kickoff of the fourth-quarter earnings season, which will see banking behemoths
Bank of America and JPMorgan Chase report results Friday.
House committee demands a hearing with SEC Chair Gensler after X account controversy
The House Financial Services Committee now wants SEC Chair Gary Gensler to provide details on what led up to the regulator’s X account posting a false social media post on bitcoin ETFs.
“To better understand how this breach occurred and how the SEC will ensure it cannot happen again, please provide a briefing to Committee staff no later than January 17, 2024,” wrote committee chairman Patrick McHenry in a Jan.
10 letter to Gensler.
On Tuesday, the Securities and Exchange Commission’s X account
made a false post, saying that the regulatory agency had approved bitcoin ETFs for trading.The price of bitcoin initially spiked but then slid below $46,000.
The SEC said that its account had been compromised.Late Tuesday evening, X said that a
preliminary investigation showed that “an unidentified individual” obtained control over a phone number associated with the SEC’s account.
“This failure is unacceptable, and it is disturbing that your agency could not even meet the standard you require of private industry,” McHenry said in his letter.
Ultimately, the SEC on Wednesday
approved rule changes to allow bitcoin ETFs.
-Darla Mercado, Christina Wilkie
Bitcoin ETF rule change can ‘reshape the dynamics of cryptocurrency investments,’ Moody’s Investors Services SVP says
Approval of a rule change from the Securities and Exchange Commission that
allows bitcoin exchange-traded funds to be made in the U.S.can shake up the crypto investing landscape, according to Rajeev Bamra, senior vice president of digital finance at Moody’s Investors Service.
The rule has been closely watched because it can give regular investors access to crypto currency.Bamra said the change may prompt more interest from institutions, which can in turn help reduce volatility in the market.
“The approval of spot bitcoin ETFs by the SEC has the potential to simplify and secure Bitcoin investments for a broader investor base, which may reshape the dynamics of cryptocurrency investments,” he said.”It could lead to substantial inflows from institutions interested in entering the cryptocurrency market as it may provide a reliable and transparent price discovery mechanism.
This could result in a more stable and liquid crypto market, representing a positive development for the digital finance ecosystem.”
Bamra noted that bitcoin and ether made crypto the best performing asset class in 2023.However, he said global monetary policy and the availability of crypto to institutional investors will help determine if that trend continues.
— Alex Harring
Stock futures open little changed
Stock futures were little changed on Wednesday, with Wall Street looking toward the December consumer price index report due out Thursday.
Futures tied to the
Dow Jones Industrial Average slipped 26 points, or 0.06%.S&P 500 futures fell 0.04% while Nasdaq 100 futures ticked up 0.01%.
— Brian Evans.
