Dow, Nasdaq Futures Move Higher; All Eyes On Inflation Data

Pre-open movers

U.S. stock futures traded higher in early pre-market trade on Tuesday after recording gains on Monday. The Dow Jones surged around 230 points, while the Nasdaq Composite jumped more than 150 points in the previous session.

The NFIB small business optimism index for August is scheduled for release at 6:00 a.m. ET, while the Consumer Price Index for August will be released at 8:30 a.m. ET. Annual inflation rate is expected to ease to 8.1% in August from 8.5% in the prior month. Analysts, meanwhile, expect monthly consumer prices falling 0.1% in August. The U.S. Treasury budget statement for August will be released at 2:00 p.m. ET.

Investors are also awaiting earnings results from Core & Main, Inc. CNM and Evolution Petroleum Corporation EPM, due to be released today.

Check out this: Market Volatility Increases Ahead Of US Inflation Data

Futures for the Dow Jones Industrial Average jumped 134 points to 32,520.00 while the Standard & Poor’s 500 index futures rose 17.25 points to 4,128.00. Futures for the Nasdaq index climbed 48.25 points to 12,789.00.

 

Commodities

Oil prices traded higher as Brent crude futures rose 0.7% to trade at $94.68 per barrel, while US WTI crude futures rose 0.8% to trade at $88.50 a barrel. The API’s report on crude oil stocks will be released later during the day.

Gold futures fell 0.2% to trade at $1,736.60 an ounce on Tuesday.

 

A Peek Into Global Markets

Europe Markets

European markets were higher today. The STOXX Europe 600 Index gained 0.3%, London’s FTSE 100 rose 0.1% while Spain’s IBEX 35 Index gained 0.2%. The French CAC 40 Index climbed 0.5%, while German DAX gained 0.2%.

The annual inflation rate in Spain fell to 10.5% in August from 10.8% in the prior month, while annual inflation rate in Germany was confirmed at 7.9% during the month. The unemployment rate in the UK declined to 3.6% in the three months to July, the lowest since 1974, while average weekly earnings including bonuses rose by 5.5% year-over-year to GBP 613 during the same period.

Asia-Pacific Markets

Asian markets traded mostly higher today. Japan’s Nikkei 225 rose 0.25%, Hong Kong’s Hang Seng Index fell 0.18% and China’s Shanghai Composite Index rose 0.05%. Australia’s S&P/ASX 200 rose 0.7%, while India’s S&P BSE SENSEX rose 0.9%.

The NAB business confidence index in Australia rose 2 points to 10 in August, while Westpac-Melbourne Institute Index of Consumer Sentiment rose by 3.9% month-over-month during September. Producer prices in Japan climbed by 9.0% year-over-year in August, versus market estimates of 8.9%.

 

Broker Recommendation

Jefferies downgraded Dow Inc. DOW from Buy to Hold and lowered the price target from $71 to $45.

Dow shares fell 0.9% to $50.45 in pre-market trading.

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Breaking News

• Oracle Corporation ORCL posted downbeat earnings for its first quarter. However, the company issued positive commentary on revenue growth expectations for the coming quarters.
• Relay Therapeutics RLAY priced its 11.32 million share public offering of common stock at $26.50 per share.
• Planet Labs PBC PL reported better-than-expected Q2 results and boosted its FY23 sales guidance.
• The U.S. Department of Justice reportedly issued nearly 40 subpoenas last week related to former President Donald Trump, his associates, and the Jan 6. Capitol insurrection.

Check out other breaking news here