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Futures up: Dow 0.08%, S&P 500 0.05%, Nasdaq 0.11%

Jan 15 (Reuters) - Futures tracking Wall Street's main

indexes were muted on Wednesday as investors awaited a slew of

big bank earnings and a crucial inflation report that could

influence market direction, especially for U.S. stocks currently

sitting on ripe valuations.

At 04:27 a.m. ET, Dow E-minis were up 35 points, or

0.08%, S&P 500 E-minis were up 3 points, or 0.05% and

Nasdaq 100 E-minis were up 23.75 points, or 0.11%.

JPMorgan Chase & Co ( JPM ), Wells Fargo ( WFC ), Citigroup ( C/PN )

and Goldman Sachs ( GS ) edged up in light premarket

trading, ahead of their quarterly earnings reports, due before

markets open. Analysts expect the lenders to report stronger

earnings, fueled by robust dealmaking and trading.

The S&P 500 Banks Index has gained about 3% in

January, outperforming Wall Street's main indexes, which have

logged declines so far this month. In 2024, the banking index

logged its biggest annual jump since 2019, on expectations that

incoming U.S. President Donald Trump's policies such as tax cuts

and loose regulations could boost the financial sector.

Following a more than two-year bull rally, the S&P 500

is trading at valuations well above its historical

long-term average and a disappointing earnings season could put

further gains for equities in jeopardy.

Also on the radar is the consumer price index, due at 8:30

a.m. ET, and economists polled by Reuters expect the figure to

rise 2.9% in December, from the previous month's 2.7% advance.

Excluding volatile items such as food and energy, the index is

expected to increase 3.3%.

"Vital is an understatement to characterise the relevance of

today's CPI release in the U.S., and after Friday's stellar

employment report, the bond market in particular is on

tenterhooks for what could be another tumultuous session and

days ahead if the data comes in hot," Societe Generale

strategist Kenneth Broux said in a note.

Signs of strong economic activity and expectations that

Trump's policies on immigration and tariffs could further stoke

price pressures have caused markets to pare back bets on the

U.S. Federal Reserve's pace of monetary policy easing this year.

Traders see the central bank delivering a total of 31.2

basis points worth of rate cuts this year, according to data

compiled by LSEG. The central bank is expected to unveil its

beige book on economic activity at 2:00 p.m. ET, which is

expected to throw further light on the health of the economy.

Adding to investor unease, yields on longer-dated Treasury

bonds remained near their more than

one-year highs.

Remarks from New York Fed President John Williams and

Chicago Fed President Austan Goolsbee, both Federal Open Market

Committee voting members, will also be parsed later in the day.

Among stocks, Applied Digital ( APLD ) lost 4.7% after the

data center operator posted a loss for the second quarter.