Benzinga - by Shanthi Rexaline, Benzinga Editor.
With inflation data in the rearview mirror, traders could be prepping to resume buying ways, with stock index futures pointing to a higher opening on Thursday. The key catalysts that can sway the market include an interest rate decision across the Atlantic, the producer price inflation report, and retail sales data for August. Oil’s has resumed its climb after its modest retreat, and traders may also keep an eye on the earnings reports from Adobe Systems, Inc. (NASDAQ:ADBE) and homebuilder Lennar Corp. (NYSE:LEN).
Cues From Wednesday’s Trading:
Stocks closed mixed on Wednesday as traders digested the August inflation data, which came roughly in line with expectations. In line with expectations, the headline consumer prices index surged up 0.6% month-over-month, with higher energy prices contributing to much of the upside. Core consumer prices climbed 0.3%, slightly higher than the 0.2% uptick expected by economists.
The annual rate of core consumer prices cooled off from 4.7% in July to 4.3% in August.
The major indices opened higher in reaction to the data but pulled back by the first hour of trading, only to reverse course immediately after. After hovering above the unchanged line, the indices returned their gains in late trading before closing mixed. The Russell 2,000 Index languished below the unchanged line for much of the session, with the exception of some early strength.
The 30-stock Dow Industrials Average notched up its second straight session of losses, while the Nasdaq Composite and the S&P 500 Index rebounded from Tuesday’s losses.
US Index Performance On Wednesday
| Index | Performance (+/-) | Value |
| Nasdaq Composite | +0.29% | 13,813.59 |
| S&P 500 Index | +0.12% | 4,467.44 |
| Dow Industrials | -0.20% | 34,575.53 |
| Russell 2000 | -0.78% | 1,840.84 |
Analyst Color:
Following the consumer price inflation report, there has been no change in expectations for a Fed pause next week, said fund manager Louis Navellier. “If anything, the market seems to be relieved that the bonds are not trading down, as it’s pretty clear that getting inflation down to the Fed’s 2% target is going to be tough sledding,” he said.
For now, the key is earnings, said Navellier, adding that 2024 has double-digit earnings growth modeled, and as long as that holds, stocks should hold on to the very strong year-to-date gains.
“We’re almost halfway through September with minimal damage. The year remains bullish,” the fund manager said.
Futures Today
Futures Performance On Thursday
| Futures | Performance (+/-) |
| Nasdaq 100 | +0.39% |
| S&P 500 | +0.33% |
| Dow | +0.25% |
| R2K | +0.43% |
In premarket trading on Thursday, the SPDR S&P 500 ETF Trust (NYSE:SPY) rose 0.39% to $448.25, and the Invesco QQQ ETF (NASDAQ:QQQ) gained 0.44% to $375.85, according to Benzinga Pro data.
Upcoming Economic Data:
The Bureau of Labor Statistics is scheduled to release its producer price inflation report at 8:30 a.m. EDT. The producer price index will likely increase 0.3% month-over-month in August, faster than the 0.2% gain in July. On a year-over-year, the PPI is estimated to rise 1.2% compared to July’s 0.8% increase.
The monthly core PPI is expected at 0.2%, down from 0.3% in July, and the annual rate may have decelerated from 2.4% to 2.2%.
The Labor Department will also release the customary jobless claims report at 8:30 a.m. Economists, on average, expect the number of individuals claiming unemployment benefits to increase from 216,000 in the week ended Sept. 2 to 225,000 in the week ended Sept. 9.
The Commerce Department is due to release its retail sales report for August at 8:30 a.m. EDT. The consensus estimate calls for a decline in the month-over-month retail sales growth from 0.7% in July to 0.2% in August.
The Commerce Department will release its business inventories report for July at 10 a.m. EDT. Business inventories are expected to edge up 0.1% from the previous month following unchanged inventory levels in June.
The Treasury is set to auction four- and eight-week bills at 11:30 a.m. EDT.
Stocks In Focus:
- Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) fell over 3.70% in premarket trading after an FDA panel raised concerns about the meaningfulness of the patisiran’s benefit in treating patients with a type of heart muscle disease, cardiomyopathy, caused by a wild-type or hereditary transthyretin-mediated amyloidosis. The panel, however, voted 9 to 3 that the drug’s benefits outweigh the risks.
- OKYO Pharma Limited (NASDAQ:OKYO) plunged nearly 25% on a common stock offering.
- Adobe Systems, Copart, Inc. (NASDAQ:CPRT), and Lennar are among the companies reporting their earnings after the market close.
Crude oil futures rose 0.89% to $89.31 in early European session on Thursday following Wednesday's 0.36% retreat.
On Thursday, the benchmark 10-year Treasury note edged up 0.01 percentage points to 4.258%.
Most Asian stocks rallied strongly on Thursday in a relief rally after the U.S. inflation data. Japan’s Nikkei 225 average advanced notably as traders digested some positive domestic data points. The South Korean and Taiwanese markets also saw noteworthy gains, while the New Zealand and Malaysian markets saw modest losses.
The European markets were higher by late-morning Thursday, with the U.K.’s FTSE 100 Index solidly higher, while the German and French markets were treading water ahead of a key central bank decision.
The European Central Bank is due to announce its interest rate decision at 8:15 a.m. EDT, with consensus calling for a status quo stance. The key interest rate is expected to stay unchanged at 4.25%. A press conference to explain the rate decision is scheduled for 8:45 a.m. EDT.
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