Investing.com -- U.S. stock futures edge lower on Monday with all-important inflation data out of the worldʼs largest economy due later this week. Elsewhere, Boeing (NYSE:BA) shares fall premarket as the planemaker and U.S. regulators reportedly discuss the criteria for safety inspections after a dangerous mid-air fuselage breach. Meanwhile, an executive at the electric vehicle division of Chinaʼs Evergrande is detained on suspicion of "illegal crimes."
1. Futures inch lower
U.S. stock futures hovered below the flatline on Monday, as investors prepared for the release of key inflation data later in the week that could factor into how the Federal Reserve approaches potential interest rate cuts in 2024.
By 05:13 ET (10:13 GMT), the S&P 500 futures contract had shed 9 points or 0.2%, Nasdaq 100 futures had lost 36 points or 0.2%, and Dow futures had dropped by 178 points or 0.5%.
Attention is turning the publication of the U.S. consumer price index from the Bureau of Labor Statistics on Thursday, which is expected to show that headline inflation accelerated slightly to 3.2% in December. The measure registered a pace of 3.1% in November. Month-on-month, it is seen speeding up to 0.2%.
But the core figure, which strips out volatile items like food and energy, is seen slowing to 3.8% annually and 0.2% monthly.
How the numbers shake out could impact market estimates for U.S. interest rates in the coming months. Hopes that the Fed will slash borrowing costs early this year have waned recently, particularly after minutes from the central bankʼs latest meeting showed that officials believed rates could remain elevated "for some time" to help bring inflation back down to its 2% target.
Evidence that the Fedʼs fight to cool price gains is proceeding slower than anticipated could further lessen what was buoyant optimism amongst traders in the final weeks of last year.
2. Boeing shares slump premarket amid scrutiny over fresh 737 Max incident
Shares in Boeing fell sharply in premarket trading in New York on Monday, as reports say that the planemaker and U.S. regulators have hit a snag in carrying out safety inspections in the wake of a mid-air breach of a 737 Max jet last week.
On Friday, a plug in an emergency door ripped from the left side of a Boeing 737 Max 9 jet shortly after the takeoff of an Alaska Airlines flight from Portland, Oregon to Ontario, California. Pilots turned around and landed the plane. Several passengers were treated for minor injuries, but no deaths were reported.
The Federal Aviation Administration subsequently ordered the temporary grounding of around 171 Boeing jets on Saturday. The agency later said the planes will not return to the air until it is "satisfied that they are safe."
But, citing people familiar with the matter, Reuters has reported that the FAA and Boeing have yet to agree on the criteria for the safety checks -- a crucial step before the inspections can take place and flights can resume.
Boeing, meanwhile, is planning to hold a company-wide meeting to discuss the incident, according to media reports. The firm has already faced heavy scrutiny over two fatal crashes of its 737 Max 8 plane in 2018 and 2019.
3. Congressional leaders reach bipartisan deal on federal spending levels
Democratic and Republican leaders in Congress announced that they have reached an agreement to set the federal spending limit for the 2024 fiscal year at roughly $1.66 trillion.
The framework accord comes as lawmakers on Capitol Hill are racing to hammer out a deal to fund the government before several federal agencies are set to run out of money later this month.
Republican House Speaker Mike Johnson said the agreement includes "hard-fought concessions," while Democratic leaders said it "clears the way for Congress to act."
A final spending deal would need to be passed by both the House and the Senate before being signed into law by President Joe Biden.
4. Evergrande EV unit says says director detained, shares slip
The electric vehicle division of Chinaʼs Evergrande has said its Vice Chairman Liu Yongzhuo has been detained and is facing a criminal investigation, sparking a fall in the firmʼs Hong Kong-listed shares.
In a filing with the Hong Kong Stock Exchange, China Evergrande New Energy Vehicle Group announced that Liu was detained in accordance with the law on suspicion of "illegal crimes." It did not provide further details.
The announcement comes as Evergrande (HK:3333), the divisionʼs parent and the focal point of a real estate crisis that has threatened to disrupt the Chinese economy, faces a hearing later this month over demands from offshore bond holders to wind up the company. Evergrandeʼs chairman Hui Ka Yan is also being investigated for suspected crimes, a separate filing in September showed.
Evergrande NEV, which once held ambitions of producing a million cars a year by 2025, sold just 760 of its only EV model in the first half of last year. It also posted a net loss of 6.9 billion yuan during the period.
5. Oil retreats after Saudi Arabia cuts prices
Oil prices fell Monday after Saudi Arabia slashed the prices of its Asian crude exports to over two-year lows, adding to the current narrative that global demand remains weak.
By 05:14 ET, the U.S. crude futures traded 2.0% lower at $72.32 a barrel, while the Brent contract dipped 1.9% to $77.30 per barrel.
Major crude exporter Saudi Arabia on Sunday cut the February official selling price of its flagship Arab Light crude to Asia to the lowest level in 27 months.
Yet, despite these worries over global economic activity, both benchmarks climbed more than 2% last week on rising geopolitical tensions in the Middle East following attacks by Yemen-based Houthis on ships in the Red Sea, prompting disruptions in shipping activity in the region.