U.S. stock futures were mostly higher on Tuesday as Wall Street digested cooler-than-expected inflation data and awaited an update on consumer prices. Futures tied to the S&P 500 (ES=F) rose 0.6%, while those on the tech-heavy Nasdaq (NQ=F) rose 0.9%. Dow Jones Industrial Average futures (YM=F) rose 0.3%.
U.S. producer prices, often a signal of the direction of consumer prices, rose just 0.1% month-on-month in July, lower than economists had forecast. On an annual basis, the Producer Price Index (PPI) rose 2.2%, nearly in line with the Federal Reserve’s 2% inflation target.
The PPI release serves as an appetizer for Wednesday’s reading on consumer prices. The July retail sales reading, a key indicator of the health of the U.S. consumer, is expected to follow on Thursday.
Wall Street is coming off an unusually dull day after more than a week of volatility. The S&P 500 and Nasdaq continued to slowly build toward the highs the indexes saw Monday before a three-day selloff wiped out a significant portion of those year-to-date gains.
Home Depot (HD) was the top name on Tuesday’s earnings call. Shares of the home improvement retailer fell after it lowered its outlook for comparable same-store sales for the rest of the year.
In other individual moves, Starbucks (SBUX) rose more than 14% after a shock announcement that it would replace its CEO with Chipotle chief Brian Niccol. Chipotle (CMG) shares fell nearly 8%.
Meanwhile, Nvidia (NVDA) rose more than 3.5% in premarket trading, following a 4% gain on Monday, after analysts at Bank of America named it a top “rebound” stock.
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