U.S stock futures lower as higher costs pressured companies

Companies in the U.S warned of rising cost pressure which further confirms fears of oncoming inflation. The market sentiment is expected to continue to bearish for this year as the market cope with rising inflation. Recently, the market stage comeback after a major bearish leg. However, the bullish comeback seems will be short-lived and the market will prepare for another bearish leg.

Despite the rising inflation numbers, it seems companies also reported growth which could subset the rising inflation threat.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index starts a bullish correction after the 31,228.22 low. The index will test 33,000 handles or the daily SMA 50 if it managed to reach the level. Traders will observe the index reaction near the resistance levels. If the index gets rejected and starts a new bearish leg then traders will prepare for a bearish continuation toward the 30,000 handles.

Kroger Co Com (KR)

KR share prices undergo bearish correction after the $62.78 high. The share prices have reached the daily SMA 100 and might extend the bearish movement toward the daily SMA 200. Traders will observe the $50.00 handle and the daily SMA 200. If the share prices could bounce from the levels then traders could enter long positions.