Market Snapshot: U.S. stock futures mostly lower as investors wait for consumer price index report

What’s driving the markets?

Thursday saw some nervousness return to markets as U.S. consumer price inflation (CPI) data loomed. Bond yields were once again inching up, with the 10-year Treasury note
TMUBMUSD10Y,
1.943%
rising one basis point to 1.936%.

January consumer prices are forecast to climb 7.2% on an annual rate, according to a survey of economists polled by The Wall Street Journal. A surge of 7% annually in December was the highest pace in 40 years.

Read: Will hot inflation data kill the stock-market bounce? What investors want to see

And: High inflation has jacked up the cost of food, gas, cars and rent – and there’s little relief in sight

“Several forecasters expect inflation could even be higher (up to 7.6 %). Volatility will be back on the U.S. bond market today and, given the long string of shocks that have taken Fed rate expectations sharply higher for this year, the slightest “miss” to the downside could have more impact than a modest upside surprise,” said a team of strategists at Saxo Bank, in a note to clients.

A higher-than-expected inflation number could pile pressure particularly on interest-rate sensitive technology stocks. The Nasdaq Composite suffered its biggest percentage drop in almost two years last month, as well as its worst January in over a decade due to worries over inflation and tighter Federal Reserve monetary policy.

Due at 8:30 a.m. Eastern Time, the monthly U.S. CPI is expected to rise 0.4% on a headline and core rate, with weekly jobless benefit claims due at the same time. The January federal budget will follow at 2 p.m. Eastern.

More earnings news is ahead from Twitter
TWTR,
+5.14%,
PepsiCo Inc.
PEP,
-0.05%,
Coca-Cola
KO,
-1.55%
and Philip Morris International Inc.
PM,
+0.24%.

What companies are in focus?

• Disney shares
  DIS,
  +3.33%
  climbed 7% after the entertainment giant reported record revenue and a profit of more than $1 billion as it added streaming subscribers than expected over the holidays, theme-park profit surged.

• Twillio Inc.
  TWLO,
  +1.78%
  shares were up 19% after the cloud communication software group posted a strong outlook and  earnings and sales that shot past Wall Street estimates.

• Uber Technologies Inc. UBER stock rose 4% as the ride-share operator reported forecast-beating profit and sales.

How are other assets trading?

• The ICE U.S. Dollar Index  
  DXY,
  +0.05%,
    a measure of the currency against a basket of six major rivals, was modestly higher.

• West Texas Intermediate crude for March delivery
  CL.1,
  +1.09%

  CLH22,
  +1.09%
   rose 0.8% to $90.39 a barrel. Gold futures for April delivery 
  GC00,
  -0.13%

  GCJ22,
  -0.13%
  slipped 0.1%to $1,834.10.

• Bitcoin  
  BTCUSD,
  +1.44%
  rose 0.5% to trade near $44,743.

• The Stoxx 600 Europe 
  SXXP,
  +0.10%
  rose 0.1%, while the FTSE 100 
  UKX,
  +0.31%
   gained 0,3%.

• The Shanghai Composite 
  SHCOMP,
  +0.17%
   rose 0.1%, while the Hang Seng Index 
  HSI,
  +0.38%
  gained 0.3% and Japan’s Nikkei 225 
  NIK,
  +0.42%
  rose 0.4%.