Before the bell: Futures fall after housing, inflation data

Commodities continued their general push higher as investors hope the recovering world economy will continue to increase demand for raw materials. Gold reached yet another record of $1,147.72 an ounce and mining stocks climbed as well. Oil advanced for a third day to nearly $80 a barrel as the dollar fell.

Two main economic reports are due out this morning both at 8:30 a.m. Eastern. The Consumer Price Index, a key measure of inflation, and October housing starts and building permits. Following Tuesday's PPI report, the market may have lowered its expectations, but for now, according to Briefing.com, economists expect CPI to rise 0.2%, the same as September. Core CPI, which excludes the often volatile food and energy prices, is expected to edge up 0.1%, after a 0.2% rise the month before. The low inflation could help the Federal Reserve stick to its decision to keep interest rates low as long as unemployment remains high.

As for the housing markets, housing starts rose 1.7% to an annual rate of 600,000, the most since November 2008, according to a Bloomberg News survey of analysts, the fastest pace in 11 months. Building permits, a sign of future construction, increased 0.9% to a 580,000 annual pace, according to the survey. Some economists expect the government steps may spur residential sales and construction in coming months, indicating housing will help the economy recover.

Overseas, European stock markets rose modestly Wednesday after a mixed session in Asia.

Finally, Hershey Co. (HSY) and Italian chocolate maker Ferrero SpA said they're reviewing their options about Cadbury Plc (CBY), after it was approached by Kraft Foods Inc. (KFT). For them to succeed, their offer would have to be higher than Kraft's unsolicited offer of 10.3 billion pounds ($17 billion).