Stock market today: Wall Street points slightly higher ahead of US inflation update

abcnews.go.com:

Wall Street ticked modestly higher ahead of a U.S. inflation update that markets hope will convince the Federal Reserve to hold off raising interest rates again when it meets later this month

Wall Street ticked modestly higher early Tuesday ahead of new U.S. inflation data that will play a role in a decision by the Federal Reserve on interest rates when it meets later this month.

Futures for the Dow Jones industrials rose 0.1% and the S&P 500 edged 0.2% higher before the opening bell.

For the first time in more than a year, the Fed did not raise its benchmark lending rate when it met in early June. Fed officials have suggested that as many as two more increases are possible this year.

Forecasters expect inflation in June to fall to 3.1% from the previous month's 4%. That would be higher than the Fed's 2% target but down sharply from last year's peak above 9%.

“They will have a hard time justifying further rate increases if headline inflation — which is their mandate — is moving convincingly towards target,” said Rubeela Farooqi of High Frequency Economics in a report.

It is still hoped that the U.S. can avoid a recession after a run-up in the Fed's benchmark lending rate to cool inflation. They expected at least a brief recession starting this quarter but are more optimistic after U.S. hiring stayed strong.

Investors are waiting for U.S. corporate profit reports for an update on how companies are being affected by inflation and weaker consumer spending.

Delta Air Lines and PepsiCo report Thursday. JPMorgan Chase will headline a rush of bank reports on Friday.

The wide expectation is for companies across the S&P 500 to report a 7.2% drop in earnings per share for the second quarter from a year earlier. That would be the