US stocks could rally today after inflation report-induced bloodbath, futures trading suggests - Nikola, JNJ, SoFi In Focus
U.S. stocks could pick up the shreds after the havoc inflicted by a stronger-than-expected inflation reading. Major U.S. index futures point to a higher open on Wednesday. On Tuesday, major US averages posted their worst single-day declines since mid-June 2020 amid the COVID-19 pandemic.
The sell-off, while widespread, was most severe among IT and communications services stocks.
"Markets hate rate hikes...and based on today's CPI numbers, there's no relief in sight", said Jamie Cox, Managing Partner, Harris Financial Group.
"While recent data suggests inflation is heading towards the Fed, it does not yet show up in the data series," he added.
Here is an overview of index futures trading:
In premarket trading on Wednesday, the SPDR S&P 500 ETF Trust SPY was up 0.43% at $394.80 and the Invesco QQQ TrustQQQ was up 0.44 % at $295, according to Benzinga Pro data.
On the economic front, the Bureau of Labor Statistics will release the Producer Price Inflation report for August at 8:30 a.m. EDT. The year-over-year rates of the leading and leading reads were 7.6% and 9.8%, respectively, in July. Since producer prices are considered a leading indicator of price developments at the retail level, a weaker than expected reading could help the market rebound significantly.
The Energy Information Administration's crude oil inventory report for the week ending September 9 is due at 10:30 a.m. EDT.
Weekly mortgage application data from the Mortgage Bankers Association is expected before the market opens.
Inventory at a glance Nikola Corporation NKLA is moving forward after BTIG upgraded stock, citing accelerating hydrogen adoption. Johnson & Johnson JNJ was seen higher after the company announced a $5 billion share buyback program. SoFi Technologies, Inc. SOFI is also climbing in response to positive analyst action. Commodities, World MarketsCrude oil futures rebound from Tuesday's moderate decline amid the release of inflation data. A barrel of WTI crude oil is currently trading at $87.72, up 0.47%.
Major Asian markets closed firmly in the red, taking inspiration from Wall Street's tumble overnight. The Japanese market was also reacting to a weak domestic industrial production report for July.
European stocks extend losses as UK inflation data adds to the negativity seen in markets.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
U.S. stocks could pick up the shreds after the havoc inflicted by a stronger-than-expected inflation reading. Major U.S. index futures point to a higher open on Wednesday. On Tuesday, major US averages posted their worst single-day declines since mid-June 2020 amid the COVID-19 pandemic.
The sell-off, while widespread, was most severe among IT and communications services stocks.
"Markets hate rate hikes...and based on today's CPI numbers, there's no relief in sight", said Jamie Cox, Managing Partner, Harris Financial Group.
"While recent data suggests inflation is heading towards the Fed, it does not yet show up in the data series," he added.
Here is an overview of index futures trading:
In premarket trading on Wednesday, the SPDR S&P 500 ETF Trust SPY was up 0.43% at $394.80 and the Invesco QQQ TrustQQQ was up 0.44 % at $295, according to Benzinga Pro data.
On the economic front, the Bureau of Labor Statistics will release the Producer Price Inflation report for August at 8:30 a.m. EDT. The year-over-year rates of the leading and leading reads were 7.6% and 9.8%, respectively, in July. Since producer prices are considered a leading indicator of price developments at the retail level, a weaker than expected reading could help the market rebound significantly.
The Energy Information Administration's crude oil inventory report for the week ending September 9 is due at 10:30 a.m. EDT.
Weekly mortgage application data from the Mortgage Bankers Association is expected before the market opens.
Inventory at a glance Nikola Corporation NKLA is moving forward after BTIG upgraded stock, citing accelerating hydrogen adoption. Johnson & Johnson JNJ was seen higher after the company announced a $5 billion share buyback program. SoFi Technologies, Inc. SOFI is also climbing in response to positive analyst action. Commodities, World MarketsCrude oil futures rebound from Tuesday's moderate decline amid the release of inflation data. A barrel of WTI crude oil is currently trading at $87.72, up 0.47%.
Major Asian markets closed firmly in the red, taking inspiration from Wall Street's tumble overnight. The Japanese market was also reacting to a weak domestic industrial production report for July.
European stocks extend losses as UK inflation data adds to the negativity seen in markets.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
What's Your Reaction?
