CPI Report Sends Stock Futures Toward Quiet Gains

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

Digital Content Manager
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. 

futures chart aug 11

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. 

buzzaug11

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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