US pre-open: Futures in the red as investors await CPI reading
By Iain Gilbert
Date: Tuesday 09 Aug 2022
(Sharecast News) - Wall Street futures were in the red ahead of the bell on Tuesday as market participants awaited more Q2 earnings.
As of 1215 BST, Dow Jones and S&P 500 futures had the indices opening 0.05% and 0.25% weaker, respectively, while Nasdaq-100 futures were down 0.60%.
The Dow closed 29.07 points higher on Monday, narrowly extending gains recorded in the previous session on the back of a solid jobs report.
On Tuesday, traders were continuing to look ahead to key inflation data scheduled for release on Wednesday, with the CPI print likely to help determine the pace of future interest rate hikes from the Federal Reserve.
CMC Markets' Michael Hewson said: "The main focus this week is very much on tomorrow's US CPI report in the wake of Friday's bumper payrolls report, which saw US 10-year yields push up to their highest levels in two weeks. Yesterday saw a much bigger softening in 10-year yields, while 2-year yields remained above 3.2%, as bond markets continued to price the biggest inversion since the dotcom bust of twenty-two years ago.
"Friday's bumper jobs report has raised expectations that the Federal Reserve still has some way to go when it comes to raising rates, with 75bps currently priced in for September, while at the same time declining inflation expectations are indicating that the Fed might have room to look at raising rates in smaller increments."
In terms of earnings, Novavax slashed full-year earnings guidance overnight on the back of poor demand for its Covid-19 vaccines, while Nvidia slumped after issuing weaker-than-expected revenue guidance.
Workhorse, Capri Holdings and Ralph Lauren will report before the open, while Coinbase, Spirit Airlines and Roblox will report after the market closes.
No major data points were scheduled for release on Tuesday.
Reporting by Iain Gilbert at Sharecast.com
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