U.S. stock futures edged higher early Thursday as investors turned their attention to another key inflation report while continuing to digest the latest corporate earnings. Dow Jones Industrial Average futures gained 99 points, or 0.18%, while S&P 500 futures rose 0.14%. Nasdaq-100 futures also traded slightly above the flatline, signaling a cautious start for Wall Street.
The main focus for traders is the July Producer Price Index (PPI), due at 8:30 a.m. ET. The report measures the prices businesses receive for goods and services and could provide fresh clues about the direction of inflation and future interest-rate decisions. Economists surveyed by Dow Jones expect producer prices to rise 0.2% from the previous month.
The PPI report comes just a day after July consumer inflation data came in largely as expected. The Consumer Price Index rose 0.1% month over month, matching forecasts and giving the S&P 500 a lift after two consecutive sessions of declines. The softer inflation reading also prompted traders to reduce expectations for a September rate hike, although economists still see the possibility of a rate increase later in the year.
Corporate earnings added another layer of uncertainty to the market. Shares of Cerebras fell sharply by 17.4% in premarket trading following its latest earnings update, while Cisco Systems dropped 5.9% and Coherent declined 5.1%. Investors are also looking ahead to Friday’s retail sales report, with economists expecting U.S. retail sales to increase by just 0.1% in July.
Outside the U.S., European markets were mostly higher, with the Stoxx 600 gaining 0.18%, while Italy’s FTSE MIB and Germany’s DAX also advanced. Asian markets finished mixed, although South Korea’s Kospi jumped 3.6% to enter bull-market territory. With inflation, consumer spending and corporate earnings all in focus, investors remain cautious as they look for clearer signals about the U.S. economy and the Federal Reserve’s next move.
source: cnbc
