US pre-open: Futures in the green as Q1 earnings begin to roll in

Wall Street futures were in the green ahead of the bell on Wednesday as market participants tried to shrug off the hottest inflation reading in more than four decades.

As of 1215 BST, Dow Jones futures were up 0.42%, while S&P 500 and Nasdaq-100 futures had the indices opening 0.53% and 0.74% higher, respectively.

The Dow closed 87.72 points lower on Tuesday, extending losses recorded in the previous session as market participants digested a key inflation report from the Labor Department.

News that US inflation had hit a fresh 40-year high in March was again in focus ahead of the bell on Wednesday. According to the Labor Department, consumer price inflation jumped to 8.5% - its fastest annual rate of growth since 1981 - as energy prices surged due to Russia's invasion of neighbouring Ukraine.

Analysts had been expecting a figure of 8.4%. On the month, prices were up 1.2% in March, versus a 0.8% increase in February and marking the biggest jump since 2005. The gasoline index surged 18.3%, accounting for more than half the total monthly increase. Food prices rose 1%, while shelter prices were 0.5% higher.

Oil prices were also in focus as futures ticked slightly higher after China relaxed a number of Covid-19 lockdowns that were expected to impact demand, with international benchmark Brent crude rising 0.24% to $105.02 per barrel, while West Texas Intermediate crude futures inched ahead 0.36% to $100.84 per barrel.

In the corporate space, the first-quarter earnings season kicked off on Wednesday, with investment manager BlackRock posting a nearly 22% rise in first-quarter profits as investors poured more money into its various funds, while Delta Air Lines reported a quarterly loss, but forecast a return to profit in the current quarter as air travel demand hits record heights.

Elsewhere, JPMorgan Chase's quarterly earnings fell short of Wall Street estimates, while retailer Bed, Bath & Beyond will also report earnings prior to the open.

On the macro front, mortgage applications in the United States decreased 1.30% week-on-week in the seven days ended 8 April, according to the Mortgage Bankers Association of America, as the average home loan rate in the US topped 5% for the first time since November 2018.

Still to come, March's producer price index will be published at 1330 BST.