After recovering from early weakness to end the previous session mixed, stocks are likely to move to the upside in early trading on Tuesday. The major index futures are currently pointing to a higher open for the markets, with the S&P 500 futures up by 0.7 percent.
The futures saw a notable advance following the release of a Labor Department report showing producer prices rose by slightly less than expected in the month of December.
The Labor Department said its producer price index for final demand crept up by 0.2 percent in December after climbing by 0.4 percent in November. Economists had expected producer prices to rise by 0.3 percent.
Meanwhile, the report said the annual rate of producer price growth accelerated to 3.3 percent in December from 3.0 percent in November. The acceleration matched economist estimates.
The smaller than expected monthly increase by producer prices may help ease recent concerns about the outlook for inflation and interest rates, although the faster annual growth may keep buying interest somewhat subdued.
On Wednesday, the Labor Department is scheduled to release its more closely watched report on consumer price inflation in the month of December.
Economists currently expect consumer prices to rise by 0.3 percent in December, matching the increase seen in November. The annual rate of growth is expected to accelerate to 2.9 percent from 2.7 percent.
Stocks showed a notable move to the downside early in the session on Monday but regained ground over the course of the trading day. The S&P 500 climbed well off its worst levels of the day and into positive territory, although the Nasdaq remained in the red.
The S&P 500 rose 9.18 points or 0.2 percent to 5,836.22, while the Nasdaq fell 73.53 points or 0.4 percent to a one-month closing low of 19,088.10.
The narrower Dow, on the other hand, spent most of the day in positive territory before closing up 358.67 points or 0.9 percent at 42,297.12.
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher on Tuesday. China’s Shanghai Composite Index surged by 2.5 percent and Hong Kong’s Hang Seng Index jumped by 1.8 percent, although Japan’s Nikkei 225 Index bucked the uptrend and slumped by 1.8 percent.
Most European stocks have also moved to the upside on the day. While the U.K.’s FTSE 100 Index has bucked the uptrend and dipped by 0.2 percent, the German DAX Index is up by 0.7 percent and the French CAC 40 Index is up by 0.8 percent.
In commodities trading, crude oil futures are falling $0.56 to $78.26 a barrel after surging $2.25 to $78.82 a barrel on Monday. Meanwhile, after plunging $36.40 to $2,678.60 an ounce in the previous session, gold futures are inching up $6.50 to $2,685.10 an ounce.
On the currency front, the U.S. dollar is trading at 157.67 yen compared to the 157.48 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.0252 compared to yesterday’s $1.0245.
Business News
U.S. Stocks May See Initial Strength As Producer Prices Rise Slightly Less Than Expected
2025-01-14 13:49:49
