Consumer prices rose by the fastest pace since 2012 in June
U.S. stock futures are on the rise this morning, as investor focus shifts from the recent trade tensions to this morning's economic data. Specifically, China has yet to respond to the Trump administration's newest list of tariffs, though the country said it would fight a trade war if necessary. Meanwhile, weekly jobless claims came in lower than expected, with 214,000 Americans filing for unemployment benefits, and the closely watched consumer price index (CPI) ticked 0.1% higher in June, signaling an extended rise in inflation. Year-over-year, the CPI grew 2.9% last month -- the most since February 2012. Against this backdrop, Dow Jones Industrial Average (DJI) futures are sharply higher, as are futures on the S&P 500 Index (SPX) and Nasdaq-100 Index (NDX).
Continue reading for more on today's market, including:
5 Things You Need to Know Today
- The Chicago Board Options Exchange (CBOE) saw 704,583 call contracts traded on Wednesday, compared to 418,971 put contracts. The single-session equity put/call ratio slid to 0.59, while the 21-day moving average remained at 0.59.
- Delta Air Lines, Inc. (NYSE:DAL) is edging higher before the opening bell, as a second-quarter earnings beat overshadows the company's lowered 2018 outlook. DAL shares have failed to take off this year, shedding 11% year-to-date to trade at $49.84, and some analysts have suggested trade tensions could weigh on the stock.
- Netflix, Inc. (NASDAQ:NFLX) is plenty used to receiving bullish analyst attention, but today the stock is reacting to a rare downgrade. UBS lowered its opinion on the streaming giant to "neutral" from "buy," saying the valuation already prices in all good news for the company. Still, Canaccord Genuity boosted its own price target to $500 on NFLX stock, which is down 0.7% ahead of the bell.
- Weak same-store sales in June for Victoria's Secret is set to weigh on L Brands Inc (NYSE:LB) today. LB stock is pointed 7% lower in electronic trading, which would put it where it was trading before its impressive earnings release in late May.
- The Treasury budget comes out today. Traders may also react to an afternoon speech from Boston Fed President Patrick Harker, while Minneapolis Fed President Neel Kashkari is slated to speak after the market closes. The earnings calendar is bare.
Chinese, European Markets Rebound
Asian markets bounced back from the previous session's sell-off, with Chinese stock's leading the charge. The Shanghai Composite surged 2.2%, while Hong Kong's Hang Seng added 0.6% as shares of ZTE jumped on news the Shenzen-based telecom was given an all-clear from Washington to begin buying from U.S. suppliers. Elsewhere, Japan's Nikkei rose 1.2% amid a cooling yen, and South Korea's Kospi added 0.2% -- even as the Bank of Korea lowered its full-year gross domestic product (GDP) forecast.
Stocks in Europe are higher at midday, joining in the global rebound. Among specific indexes, London's FTSE 100 is up 0.9% ahead of the government's release of its White Paper detailing the country's Brexit plan and a visit from U.S. President Donald Trump. The French CAC 40 is also flirting with a 0.9% lead, while the German DAX is 0.6% higher following a report that showed inflation slowed last month.