U.S. Stock Futures Edge Up After Inflation Data

By Saumya Vaishampayan 

        U.S. stock futures remained slightly higher Tuesday after data on consumer prices showed weak underlying inflation.
        S&P 500 futures added five points, or 0.2%, to 3000. E-mini Dow futures gained 49 points, or 0.3%, to 18065, and e-mini Nasdaq-100 futures gained 10 points, or 0.2%, to 4447.
        U.S. consumer prices rose 0.2% in February from a month earlier, the first increase since October and the biggest since June, the Labor Department said Tuesday. Core prices, which exclude volatile food and energy prices, also rose 0.2%. Economists surveyed by The Wall Street Journal expected a 0.2% increase in overall prices and a 0.1% rise in core prices.
        Still, the data showed underlying inflation remained weak. That's unlikely to spur the Federal Reserve to raise interest rates quickly, as officials consider inflation and employment in making monetary-policy decisions. While the Fed is widely expected to raise short-term rates this year, its latest statement reaffirmed that it remains in no rush to do so.
        Economic reports are likely to drive action in coming days, as investors wait for first-quarter earnings and further updates on monetary policy from the Fed. That could lead to muted moves in the market, especially with stocks hovering near all-time highs, analysts said. The Dow is 0.9% below its record close of 18288.63 and the S&P is 0.6% from its all-time high of 2117.39, through Monday's close. The tech-heavy Nasdaq is nearing its closing record of 5048.62, set on March 10, 2000.
        "We're still digesting the news from last week, particularly in regard to the Fed and the ongoing question of whether they're going to raise rates in June or later," said Colin Cieszynski, chief market strategist at CMC Markets.
        U.S. stocks inched lower Monday, with the Dow industrials falling 0.1% to 18116.04. The S&P 500 fell 0.2% to 2104.42.
        In commodity markets, crude-oil futures advanced 1% to $47.93 a barrel. Gold futures added 0.2% to $1189.60 an ounce.
        Treasury prices rose, pushing the 10-year yield down to 1.905% from 1.916% on Monday.
        European stocks inched higher. France's CAC 40 added 0.2% and Germany's DAX gained 0.1%. Investors eyed data showing the eurozone's economic recovery gained momentum in March. Data firm Markit's composite purchasing managers index, which measures activity in the manufacturing and services sectors, rose to a 46-month high of 54.1 this month from 53.3 in February.
        At the same time, economic reports are pointing to a further slowdown in Chinese economic growth, with an indicator of factory activity falling to an 11-month low in March. The preliminary HSBC China manufacturing purchasing managers index fell to 49.2 in March, compared with a final reading of 50.7 in February. A reading below 50 indicates contraction.
        In corporate news, McCormick & Co. said its earnings fell 15%, adding that a stronger U.S. dollar weighed on sales growth in the quarter ended February. Still, the company's adjusted results beat expectations. Shares rose 2.7% premarket.
        Linn Energy LLC said it has teamed up with private-equity firm Quantum Energy Partners to make acquisitions in the oil-and-gas space. Linn shares advanced 4.8% premarket.
        Write to Saumya Vaishampayan at saumya.vaishampayan@wsj.com
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        (END) Dow Jones Newswires

        March 24, 2015 09:07 ET (13:07 GMT)

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