Futures up: Dow 0.1%, S&P 500 flat, Nasdaq 0.1%
JPMorgan Chase beat estimates for Q4 profit
Delta's profit forecast disappoints
Adds comment, details; updates prices
By Medha Singh and Pranav Kashyap
Jan 13 (Reuters) - Wall Street's main indexes were headed for a muted open on Tuesday after a largely in-line inflation report sustained expectations of rate cuts this year, while investors weighed mixed quarterly results from JPMorgan and Delta Air Lines.
Excluding volatile food and energy components, U.S. consumer prices increased 0.2% in December from the prior month, softer than economists' forecast of a 0.3% increase. Headline and core CPI rose 2.6% year-on-year last month after rising by the same margin in November.
The data solidified Fed bets on at least two more 25 basis point interest rate cuts between June and December, with traders seeing a small chance of a third, per LSEG data.
"The Fed is likely to take its time and absorb more data, especially given the noise we've seen in the recent data as a result of the government shutdown," said Skyler Weinand, chief investment officer, Regan Capital.
JPMorgan JPM.N shares were up 0.4% in choppy premarket trading after the bank's quarterly profit beat estimates as its traders cashed in on volatile markets.
Other big banks, due to report later this week, are widely expected to post stronger quarterly result s, helped by a pickup in dealmaking.
Delta Air Lines DAL.N shares fell 4.6% as the mid-point of its 2026 profit forecast fell short of analysts' expectations.
The weakness spilled across the sector, with United Airlines UAL.O and American Airlines AAL.O each down about 2%.
At 8:51 a.m., S&P 500 E-minis EScv1 were up 2.5 points, or 0.04%, Dow E-minis YMcv1 were down 61 points, or 0.12%, and Nasdaq 100 E-minis NQcv1 were up 19.5 points, or 0.08%.
INTEREST RATE OUTLOOK IN FOCUS
Wall Street started the week on the back foot after U.S. prosecutors opened a criminal investigation involving Fed Chair Jerome Powell, stirring fresh anxiety about the central bank's independence and drawing sharp criticism from prominent Republicans.
The market bounced back during the session, as gains in tech giants and Walmart WMT.O sent the S&P 500 and the Dow to fresh record closes.
Investors have also largely shrugged off geopolitical concerns, including the United States toppling Venezuela's leader, its threat to take over Greenland and warning of strikes in Iran.
Lofty valuations have driven investors toward small-cap stocks, which have outperformed broader markets since the start of the year, though it remains to be seen if the trend will last.
The Russell 2000 .RUT has gained 6.2% in the first seven trading days of 2026, compared with a 1.9% rise in the S&P 500.
"We've seen fits and starts from small caps for years now. We need to see a little more to believe this is finally the time for small caps," said Ryan Detrick, chief market strategist at Carson Group in Omaha.
"But with a little bit stronger economy and potentially a more dovish Fed, those could be tailwinds for small caps."
Among other stocks, BNY BK.N raised its target for a key profitability measure, but the custodian bank's shares slipped 0.6%.
Intel shares INTC.O rose 3.9% and AMD AMD.O gained 3.5% after KeyBanc upgraded both the chipmakers' shares to "overweight."
(Reporting by Medha Singh and Pranav Kashyap in Bengaluru; Editing by Maju Samuel)
((Medha.Singh@thomsonreuters.com))
