Dow futures rise 35 pts; caution ahead of key inflation data

As investors prepare for the release of crucial inflation data and the final minutes of the Federal Reserve meeting later this week, U.S. markets are expected to open Tuesday slightly higher.

The Dow futures contract was up 35 points, or 0.1%, the S&P 500 futures were up 7 points, or 0.2%, and the Nasdaq 100 futures were up 20 points, or 0.2%, as of 7:00 ET (11:00 GMT).

Investors weighed the effects of the March jobs report, announced on Good Friday, on the Federal Reserve’s monetary policy from now on as the major indices ended the day with mixed results.

The tech-heavy Nasdaq Composite saw slight losses, but the blue-chip Dow Jones Industrial Average closed 100 points, or 0.3%, higher and the S&P 500 gained 0.1%.

Last month, the economy added 236,000 jobs, bringing the unemployment rate to 3.5%, a more than 50-year low.

Fears that the Federal Reserve would continue to raise interest rates have grown due to this evidence of sustained strength in the labour market.

In light of this, investors will pay close attention to the Fed’s second mandate to maintain price stability this week. They are looking for additional cues about the Fed’s willingness to pursue aggressive rate hikes in the future.

The release of March inflation data is scheduled for this Wednesday. According to experts, core consumer price inflation, which excludes the expenses of food and fuel, is expected to climb by 0.4% on a monthly basis and 5.6% annually, up from 5.5% in February.

On Wednesday, the Fed is also expected to release the minutes from its March meeting. On Tuesday, speakers, including Philadelphia Fed President Patrick Harker and Minneapolis Fed President Neel Kashkari will give comments.

In terms of corporate news, earnings from grocery giant Albertsons (NYSE:ACI) and used car seller CarMax (NYSE:KMX) are scheduled for Tuesday, but it’s the quarterly results from JPMorgan (NYSE:JPM) and Citigroup (NYSE:C) that will gain the most attention because they will give an update on the state of the U.S. banking sector in the wake of last month’s crisis.

Oil prices edged lower Tuesday before the release of industry data showing crude inventories in the U.S., the world’s biggest crude consumer.

After a reduction of almost 4 million barrels last week, the American Petroleum Institute, an industry group, is set to issue its weekly report on U.S. oil stockpiles later in the session.

U.S. oil futures were trading 0.2% lower at $79.62 a barrel by 07:00 ET, while the Brent price was down 0.2% at $84.00.

Gold futures also increased by 0.8% to $2,019.55/oz, and the EUR/USD traded 0.6% higher at 1.0924.