Benzinga - The index futures point to a modestly higher opening for the market on Tuesday, although the November consumer price inflation due ahead of the open could sway sentiment either way depending on how the data turns up.
JPMorgan (NYSE:JPM) analyst Andrew Tyler sees a 2-3% rally by the S&P 500 Index if the annual inflation rate comes in at 7.2%-7.7%, for which he ascribes a probability of 50%.
U.S. stocks launched into a strong rally on Monday, capitalizing on bargain-hunting following recent losses. Oil’s rally, M&A news and expectations of a tamer inflation reading and a less hawkish Federal Reserve lent support to the rally.
| Nasdaq Composite | +1.26% | 11,143.74 | |
| S&P 500 Index | +1.43% | 3,990.56 | |
| Dow Industrials | +1.58% | 34,005.04 |
“We think the markets are too sanguine on rates after the first quarter and we expect Powell to take a more hawkish tone and for the dots to indicate higher rates for a longer period of time than what is currently being priced in by the futures markets; a “hawkish” step-down so to say,” the analyst said.
Here’s a peek into index futures trading:
| Nasdaq 100 Futures | +0.48% | |
| S&P 500 Futures | +0.37% | |
| Dow Futures | +0.33% | |
| R2K Futures | +0.82% |
On the economic front, the Labor Department’s CPI data due to be released at 8:30 a.m. EST will likely show a drop in the monthly rate to 0.3% in November from 0.4% in October. On a year-over-year basis, the index may have risen 7.3%, slower than the previous month’s 7.7% rise.
The core CPI is expected to rise at an unchanged monthly pace of 0.3% and an annual rate of 6.1%, down from 6.3% in October.
The Redbook index, a sales-weighted index of year-over-year same-sales growth in a sample of large U.S. general merchandise retailers, is scheduled to be released at 8:55 a.m. EST.
The Treasury is due to auction 30-year bonds at 1 p.m. EST.
Stocks In Focus:
- Oracle Corp . (NYSE: NYSE:ORCL) advanced over 2% in premarket in reaction to its better-than-expected quarterly results.
- Mirati Therapeutics Inc. (NASDAQ: MRTX) jumped over 15% on securing FDA's nod for its KRASG12C inhibitor that is indicated to treat non-small cell lung cancer. It is a rival drug to Amgen Inc (NASDAQ:AMGN).’s (NASDAQ: AMGN) Lumakras.
- Pinterest (NYSE:PINS) Inc. (NYSE: PINS) rose on an analyst ratings upgrade.
Crude oil futures, which broke a five-session losing streak on Monday, were advancing in the European session. A barrel of WTI-grade crude oil traded up 1.13% at $74.
OPEC, the 13-nation coalition of the world’s biggest oil producers, is due to release its monthly oil report at 7 a.m. EST. The demand and supply projections made in the report could sway oil prices.
Asia-Pacific stocks closed Tuesday’s session on a mixed note amid caution, as the Chinese, Malaysian, Taiwanese and South Korean markets lost ground, while the Japanese, Indonesian, Australian, New Zealand and Indian markets ended in the green.
The major European markets showed nervousness in early trading ahead of the U.S. inflation data, although they were holding up.
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