After ending the previous session mostly higher, stocks may move back to the downside in early trading on Tuesday. The major index futures are currently pointing to a modestly lower open for the markets, with the S&P 500 futures down by 0.2 percent.
Traders may look to cash in on yesterday’s gains ahead of the release of the Labor Department’s highly anticipated report on consumer price inflation on Wednesday.
Economists currently expect the annual rate of consumer price growth to accelerate to 3.6 percent in August from 3.2 percent in July, while the annual rate of core consumer price growth is expected to slow to 4.4 percent from 4.7 percent.
Ahead of the data, CME Group’s FedWatch Tool is currently indicating a 91.0 percent chance the Federal Reserve will leave interest rates unchanged next week.
The outlook for November is a little more uncertain, however, with the FedWatch Tool indicating a 54.8 percent chance rates will remain unchanged and a 41.6 percent chance of another quarter point rate hike.
A steep drop by shares of Oracle (ORCL) may weigh on the tech-heavy Nasdaq, with the software giant plunging by 9.5 percent in pre-market trading.
The slump by Oracle comes after the company reported weaker than expected fiscal first quarter revenues and provided disappointing revenue guidance for the current quarter.
Following the notable pullback seen last week, stocks moved mostly higher during trading on Monday. The major averages all moved to the upside on the day, adding to the modest gains posted last Friday.
The major averages all closed in positive territory, with the tech-heavy Nasdaq posting a standout gain. The Nasdaq surged 156.37 points or 1.1 percent to 13,917.89, the S&P 500 climbed 29.97 points or 0.7 percent to 4,487.46 and the Dow rose 87.13 points or 0.3 percent to 34,663.72.
In overseas trading, stock markets across the Asia-Pacific region turned in another mixed performance during trading on Tuesday. Japan’s Nikkei 225 Index jumped by 1.0 percent, while China’s Shanghai Composite Index dipped by 0.2 percent.
The major European markets are also mixed on the day. While the U.K.’s FTSE 100 Index is up by 0.4 percent, the French CAC 40 Index is down by 0.1 percent and the German DAX Index is down by 0.3 percent.
In commodities trading, crude oil futures are jumping $1.06 to $88.35 a barrel after slipping $0.22 to $87.29 barrel on Monday. Meanwhile, after inching up $4.50 to $1,947.20 an ounce in the previous session, gold futures are falling $14 to $1,933.20 an ounce.
On the currency front, the U.S. dollar is trading at 146.97 yen compared to the 146.59 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.0715 compared to yesterday’s $1.0750.
Business News
U.S. Stocks May Give Back Ground In Early Trading
2023-09-12 12:50:21
