Nasdaq, S&P, Dow set to close higher in runup to key CPI report, bank earnings
narvikk

U.S. stocks on Wednesday were on track to end higher in what was a relatively quiet trading session ahead of a keenly anticipated inflation report on Thursday.
With less than an hour of trading left, the tech-heavy Nasdaq Composite (COMP.IND) had added 1.36% to 10,888.97 points, helped by a more than 5% jump in shares of Amazon (AMZN).
The benchmark S&P 500 (SP500) rose 0.96% to 3,956.80 points, while the blue-chip Dow (DJI) advanced 0.54% to 33,885.89 points.
Of the 11 S&P sectors, ten were trading in the green, led by Real Estate and Consumer Discretionary. Consumer Staples was the only loser.
Tuesday was also a mostly uneventful trading session as investors await Thursday's December Consumer Price Index report and the start of fourth-quarter earnings with results from major banks on Friday.
"Markets have ... been relatively quiet over the last 24 hours as we await tomorrow's all important US CPI print," Deutsche Bank's Jim Reid said. "There was some speculation that remarks from Fed Chair Powell could inject some volatility into proceedings but overall markets turned steadily higher after his lack of commentary on the policy outlook at his panel in Stockholm."
Thursday's CPI report may show some moderation in inflation. That could give the Federal Reserve room to slow down its pace of rate hikes while buttressing expectations that the central bank can downshift to a 25 basis point hike at its next meeting in February.
Boston Fed president Susan Collins in an interview said that returning to a 25 basis point hike would help the Fed to assess the effects of the tightening it has already implemented.
According to the CME FedWatch tool, markets are pricing in a 79.2% probability of a 25 basis point hike at the February meeting, with a 20.8% probability of a 50 basis point hike.
On the economic calendar on Wednesday, the January Atlanta Fed Business Inflation Expectations came in at +3% versus a prior reading of +3.1%.
Turning to the bond markets, yields were lower after rising in the previous session. The 10-year Treasury yield (US10Y) was down 7 basis points to 3.55% and the 2-year yield (US2Y) was down by 4 basis points to 4.22%.
Among active stocks, Bed Bath & Beyond (BBBY) surged more than 40% as part of a relief rally and was among the top percentage gainers on the Nasdaq Composite (COMP.IND). 
WWE (WWE) was lower after Vince McMahon resumed chairmanship of the company.