US stocks are expected to beat a retreat on Wednesday ahead of closely watched July inflation data

6.55am: CPI creates uncertainty US stocks are expected to beat a retreat on Wednesday ahead of closely watched July inflation data and as Treasury yields rose for the seventh day in a row. Futures linked to the Dow Jones Industrial Average were a touch lower, while S&P 500 futures lost 0.1%, and Nasdaq-100 futures fell 0.2%. US consumer prices are forecast to rise by 5.3% year-over-year in July, slightly lower than June’s 5.4% jump but still close to the highest 12-month rate since 2008. The core CPI, which excludes food and energy prices, is expected to have increased by 4.4% from the year before The Federal Reserve is still betting that elevated inflation readings will be temporary, a key part of its easy-money policies, but after last week's stronger than expected July payrolls report a tapering by the US central bank is on the cards sooner rather than later. In bond markets, the yield on the 10-year Treasury note ticked higher. The Senate passed a $3.5 trillion budget blueprint early Wednesday, the first step in an arduous process designed to allow Democrats to push through a sweeping package of education, healthcare, climate and other provisions without Republican support. Investors are awaiting another batch of corporate earnings, with Wendy’s set to report before the market opens, and eBay after the market closes. Five other things to watch on Wednesday: The current inflation spike shouldn't push the Federal Reserve to tighten monetary policy prematurely, with more months of labor data needed before any changes as well as more certainty that the pace of price increases will remain above the Fed's 2% target, Chicago Fed president Charles Evans said on Tuesday. NortonLifeLock Inc. has agreed to acquire and combine with cybersecurity firm Avast PLC in a cash-and-stock deal that would extend the US company’s focus on consumer software. Boeing Co said a 737 MAX test plane took to the skies in China on Wednesday as the US firm looks to end a nearly two-and-a-half-year regulatory grounding of the model in the key travel market following crashes. Exxon Mobil Corp has begun marketing US shale gas properties as it ramps up a long-stalled program that aims to raise billions of dollars to shed unwanted assets and reduce debt taken on last year, according to Reuters. US President Joe Biden will convene a summit with leaders from democratic nations on December 9 and 10, 2021, as part of a sustained effort to shore up the foundation of such governments, the White House said on Wednesday.