CPI Report Sends Stock Futures Toward Quiet Gains

The CPI was muted in July, compared to June's red-hot reading

Deputy Editor
Aug 11, 2021 at 9:15 AM
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U.S. Stock futures are slightly higher this morning, rising after an upbeat Consumer Price Index (CPI) reading for July. Specifically, the CPI saw a year-over-year rise of 5.4%, slightly above the expected 5.3% jump, while the CPI excluding food and energy rose 0.3%, coming in just below the 0.4% rise expected and marking a cool-down from June's 0.9% jump. 

In response, futures on the Dow Jones Industrial Average (DJI) are pointed roughly 70 points higher, while S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) futures are also eyeing modest gains, just one day after both the Dow and the S&P 500 hit fresh intraday and record closing highs. Meanwhile, the 10-year Treasury yield is sinking, last seen trading at 1.344%. 

Continue reading for more on today's market, including:

  • 20 sectors for contrarians to target right now. 
  • The buyout battle for Kansas City Southern rages on. 
  • Plus, cancellations sink airline stock; GOOS falls flat after quarterly report; and Coinbase makes earnings debut. 

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5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1.7 million call contracts traded on Tuesday, compared to 776,003 put contracts. The single-session equity put/call ratio fell to 0.43 and the 21-day moving average stayed at 0.52.
  2. Southwest Airlines Co (NYSE:LUV) is off 2.5% in electronic trading after the flight company said it's seeing an increase in cancellations as concerns over the Covid-19 delta variant become more prominent, warning that profitability for the current quarter could be difficult. LUV is up 9.6% in 2021. 
  3. The shares of Canada Goose Holdings Inc (NYSE:GOOS) are down 5.5% ahead of the bell, despite the firm posting slimmer-than-anticipated fiscal first quarter losses, as well as a revenue beat. A widening loss due to climbing expenses is keeping some weight on the stock, though it still sports an impressive 49% year-to-date lead. 
  4. Cryptocurrency darling Coinbase Global Inc (NASDAQ:COIN) just entered the earnings confessional for the first time since becoming a publically traded company, coming out with second-quarter profits and revenue that topped analysts' estimates. More impressively, the firm's revenue rose to $2 billion from $178 million year-over-year, pushing COIN 3.2% higher ahead of the bell. COIN is already up nearly 14% in August. 
  5. Investors will pore over the federal budget balance update. 

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Markets Overseas Struggle for Direction

Asian markets finished today’s session with mixed results. The Nikkei in Japan turned in the biggest win, jumping 0.7%, while Hong Kong’s Hang Seng closed 0.2% higher. Elsewhere, China’s Shanghai Composite added a paltry 0.08%, despite shares of Evergrande, the country’s most indebted property developer, soaring more than 8% after the company announced discussions to sell stakes in some of its units. Rounding out the region, South Korea’s Kospi slid 0.7%.

Markets in Europe are telling a similar story, mixed at midday as investors continue to monitor the Covid-19 situation and unpack the deluge of corporate reports that came out today. This includes German utility giants e.On and Uniper, and London-based food delivery company Deliveroo.  At last check, London’s FTSE 100 is up 0.5%, France’s CAC 40 is 0.3% higher, and the German DAX is just below breakeven. 

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