Spencer Platt
Stock index futures are trading in a range in Tuesday’s early premarket action with the latest retail inflation data likely to drive direction.
S&P futures (SPX) are +0.3%, Nasdaq 100 futures (NDX:IND) are +0.3% and Dow futures (INDU) are +0.3%.
The major averages are coming off a solid performance to start the week.
“Some may call it a bear market rally, call it whatever you want to call it, but it’s being likely driven by completely washed out sentiment and these things could always go further than you think,” MKM’s Michael Darda said, adding that while the rally could go further this week, the S&P looks likely stuck in a range of 3,500 to 4,300.
Rates are slightly lower. The 10-year Treasury yield (US10Y) is down 3 basis points to 3.33% and the 2-year yield (US2Y) is off 3 basis points to 3.54%.
August CPI is due before the bell. Economists expect that the headline number fell 0.1% month on month, with the an annual rate projected to come in at 8.1%. The core CPI is forecast to have risen 0.3% compared to the previous month.
“Core inflation clearly is slowing, but August brings risks in both directions; vehicle prices are wild,” Pantheon Macro’s Ian Shepherdson said. He is looking for a 0.3% rise in core CPI.
“The uncertainty in August runs from rents through cars – new and used – to airline fares and hotel room rates.”
Looking to company news, early votes reportedly show Twitter easily getting shareholder approval of the Elon Musk buyout offer.
Image and article originally from seekingalpha.com. Read the original article here.