Nasdaq, S&P 500 Futures Skyrocket As Consumer Price Inflation Cools Off Notably In November: Oracle, Tesla, Pinterest Among Early Movers

The index futures point to a sharply higher opening on Tuesday, as the November consumer price inflation report came in notably below October levels and the consensus expectations.

U.S. stocks launched into a strong rally on Monday, capitalizing on bargain-hunting following recent losses. Oil’s rally, M&A news and expectations of a tamer inflation reading and a less hawkish Federal Reserve lent support to the rally.

Irrespective of Tuesday’s inflation data, rates could stay higher for a longer period, said Cliff Hodge, chief investment officer for Cornerstone Wealth, in a recent note.

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“We think the markets are too sanguine on rates after the first quarter and we expect Powell to take a more hawkish tone and for the dots to indicate higher rates for a longer period of time than what is currently being priced in by the futures markets; a “hawkish” step-down so to say,” the analyst said.

Here’s a peek into index futures trading:

In premarket trading on Tuesday, the SPDR S&P 500 ETF Trust SPY rose 2.22% to $407.80 and the Invesco QQQ Trust QQQ advanced 3.24% to $294.84, according to Benzinga Pro data.

On the economic front, the Labor Department’s CPI report for November showed a 0.1% month-over-month increase, notably slower than the 0.4% in October and the expected 0.3% rise. On a year-over-year basis, the index rose 7.1%, the smallest increase since December 2021, and slowing from October's 7.7% rate. The consensus called for a more modest slowdown to a 7.3% rate.

The core CPI rose 0.2%, slower than the 0.4% increase in October and the expected 0.3% increase. The core annual rate came in at 6% compared to the consensus of 6.1% and down from 6.3% in October.

The slowdown primarily reflected the weakness in the prices of energy and transportation services.

The Redbook index, a sales-weighted index of year-over-year same-sales growth in a sample of large U.S. general merchandise retailers, is scheduled to be released at 8:55 a.m. EST.

The Treasury is due to auction 30-year bonds at 1 p.m. EST.

Stocks In Focus:

• Oracle Corp. ORCL advanced over 2% in premarket in reaction to its better-than-expected quarterly results.

Tesla Inc. TSLA rose over 1.60% following its sharp retreat on Monday.

• Mirati Therapeutics Inc. MRTX jumped over 15% on securing FDA's nod for its KRASG12C inhibitor that is indicated to treat non-small cell lung cancer. It is a rival drug to Amgen Inc.’s AMGN Lumakras.
• Pinterest Inc. PINS rose on an analyst ratings upgrade.

Commodities, Other Global Equity Markets:

Crude oil futures, which broke a five-session losing streak on Monday, were advancing in the European session. A barrel of WTI-grade crude oil traded up 1.13% at $74.

OPEC, the 13-nation coalition of the world’s biggest oil producers, is due to release its monthly oil report at 7 a.m. EST. The demand and supply projections made in the report could sway oil prices.

Asia-Pacific stocks closed Tuesday’s session on a mixed note amid caution, as the Chinese, Malaysian, Taiwanese and South Korean markets lost ground, while the Japanese, Indonesian, Australian, New Zealand and Indian markets ended in the green.

The major European markets showed nervousness in early trading ahead of the U.S. inflation data, although they were holding up.