(Reuters) – Futures tied to Wall Street’s main indexes rose on Tuesday ahead of producer prices data that will likely offer some clues on the progress in the Federal Reserve’s fight against inflation and its interest-rate path.
Stocks wobbled on Monday with the S&P 500 nearly flat and the Nasdaq eking out modest gains, following a turbulent week marked by mixed economic reports and a rate hike by Japan’s central bank.Macro data will grab the spotlight before the opening bell as the U.S. producer price index (PPI) reading is expected to show that inflation moderated to 2.3% in July on a yearly basis, while it remained unchanged at 0.2% for the month.This will be followed by the all-important consumer price (CPI) figures for July on Wednesday.Traders continue to be evenly split between 25- and 50-basis point interest rate cut by the Federal Reserve in September and expect the year-end rate at 4.25%-4.50%, according to CME’s FedWatch Tool.”One could argue that equity is still in recovery mode after last week’s shake out, and holding out from really putting money to work until we get the key US data this week, where pricing U.S. growth is still the main game in town,” said Chris Weston, head of research at Pepperstone.Also, on investors’ radar will be comments from Atlanta Fed President Raphael Bostic, due at 1:15 p.m. ET, on the outlook for the U.S. economy.Results from retailer Home Depot (NYSE:HD) will also be closely watched to assess the health of the American consumer ahead of retail sales data on Thursday.
Wall Street’s fear gauge, CBOE Volatility Index was at 20.14 points after falling 18.87 on Monday.
At 05:19 a.m. ET, Dow E-minis were up 64 points, or 0.16%, Nasdaq 100 E-minis were up 97.75 points, or 0.52%, and U.S. S&P 500 E-minis were up 18.5 points, or 0.34%.
In premarket trading, chipmaker Nvidia (NASDAQ:NVDA) led the inclines for megacap and growth stocks with a 1.5% gain.
Roger Federer-backed On Holding beat analysts’ estimates for second-quarter revenue on Tuesday on strong demand from customers looking for trendy products, but shares fell nearly 9% premarket after the company reiterated its annual sales forecast.
BuzzFeed rose 14.8% after the digital media company narrowed its net loss in the second quarter to $6.6 million from $22.5 million a year earlier.
