Stock futures cling to gains despite inflation data
Dow futures eye muted pop
Equity futures rose ahead of this morning’s Producer Price Index (PPI), but gave up some of those early gains, after wholesale prices jumped 0.4% higher than scheduled for September. Dow Jones Industrial Average (DJI) futures are eyeing a modest rise, while Nasdaq-100 (NDX) and S&P 500 (SPX) futures are holding onto some of their gains in an attempt to break out positions respective. five consecutive days of defeats.
Investors fear that the higher-than-expected inflation reading could encourage the Federal Reserve to take even more drastic measures. They are also awaiting the minutes of the Fed’s September meeting, which will be released later today.
Keep reading to learn more about the current market, including:
- The ETFs to watch in times of market uncertainty.
- Another analyst gets optimistic this struggling stock.
- Additionally, LYFT gets an upgrade; PEP appears after winnings; and INTC reportedly planned layoffs.
5 things you need to know today
- The Cboe Options Exchange (CBOE) saw 958,982 million buy contracts and 735,153 sell contracts traded on Tuesday. The single-session sell-to-buy ratio rose to 0.77, while the 21-day moving average remained at 0.68.
- Carpool inventory analysts have been busy, and now Gordon Haskett is stepping in. The analyst raised his rating to Lyft Inc. (NASDAQ: LYFT) to ‘buy’ from ‘hold’, noting that the stock is currently at an attractive valuation as the supply of drivers improves, which should boost the company’s results. Lyft stock is up 3% before the bell as it tries to pare yesterday’s 12% drop, triggered by the Labor Department’s proposal that could classify drivers as employees instead of pennies – contractors.
- PepsiCo, Inc. (NASDAQ: PEP) is up, up 2.3% pre-opening, following the soda giant’s third-quarter earnings report. The company exceeded expectations in terms of turnover and profit and also raised its forecasts. PEP’s year-to-date deficit is relatively slim compared to most of the market at just 6.4%.
- Intel Corporation (NASDAQ: INTC) plans to lay off thousands of employees from its workforce of around 113,700 employees to cope with the slow PC market. INTC is slightly higher in premarket trading, last up 0.2%, although it has lost 53.1% over the past 12 months.
- Today economic calendar will feature the final reading of the PPI demand for September, as well as the latest minutes from the Federal Open Market Committee (FOMC).
Global markets mixed ahead of US inflation data
As Asian markets await inflation data from the United States, South Korea’s Kospi closed up 0.5% on Wednesday after the country’s central bank raised interest rates in October. Although the decision is in line with expectations, the bank went on to say that it may allow a wider rate differential with the US Federal Reserve. Elsewhere, China’s Shanghai Composite gained 1.5% and Hong Kong’s Hang Seng fell 0.8%, after data showed Chinese banks extended more new loans than analysts expected. Finally, the Japanese Nikkei lost a meager 0.02%, after the yen weakened to a 24-year high.
European stocks are also mixed today. London’s FTSE was last seen down 0.1%, after the Bank of England’s (BoE) decision to end its emergency bond-buying program pushed up bond yields. Privately, however, the BoE appears willing to extend said bond-buying program, according to a Financial Times report. The French CAC 40 and the German DAX, meanwhile, lead 0.2% and 0.3% respectively, at last glance.