U.S. Equities Steady Ahead of Inflation Data, European Stocks Rise

U.S. equity futures traded sideways as investors awaited the release of crucial inflation data later today for clues on the outlook for interest rate cuts.

Key Points:

* S&P 500 futures dipped slightly by 0.1%.
* European stocks were buoyed by positive earnings reports.
* An index of Asian shares edged higher.
* Treasury yields rose slightly, with the 10-year yield climbing one basis point to 4.55%.
* The stakes are high for markets leading up to Wednesday's consumer price index (CPI) release.
* Economists predict a 0.3% increase in core CPI (excluding food and energy) in January, up from December's 0.2% gain.
* Hotter-than-expected inflation could push 10-year Treasury yields to 4.60%, derailing recent risk-on sentiment.
* JPMorgan Chase & Co. estimates that a 0.4% or more increase in CPI could lead to a 2% decline in the S&P 500.

Corporate News:

* Heineken NV shares surged 13% on strong beer sales and a buyback announcement.
* ABN Amro Bank NV shares jumped 8.9% on double-digit growth in net interest income and fees.
* CVS Health Corp. provided earnings guidance below Wall Street estimates due to high healthcare costs and limited government payments.
* Lyft Inc. declined in premarket trading after projecting weaker first-quarter gross bookings due to cold weather impacting ride-hailing demand.
* DoorDash Inc. reported an optimistic outlook for first-quarter orders, indicating continued consumer resilience.

Economic Releases:

Wednesday:

* US CPI
* Fed Chair Jerome Powell testifies to House Financial Services panel
* Fed's Raphael Bostic and Christopher Waller speak

Thursday:

* Eurozone industrial production
* US initial jobless claims, PPI

Friday:

* Eurozone GDP
* US retail sales, industrial production, business inventories
* Fed's Lorie Logan speaks