Stock Futures Brush Off High Inflation Data

The consumer price index rose at its fastest pace in 39 years

Deputy Editor
Dec 10, 2021 at 9:13 AM
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Stock futures are pointed higher this morning, after the major benchmarks yesterday snapped their three-day win streaks. Dow Jones Industrial Average (DJI) futures are up triple digits ahead of the open, while futures on the S&P 500 (SPX) and Nasdaq-100 (NDX) sit firmly in the black as well. Investors are unpacking inflation data this morning, after the consumer price index (CPI) rose 6.8% year-over-year -- its fastest rate since 1982 and slightly above Wall Street's estimates of 6.7% -- while the core CPI, excluding food and energy, rose a hefty 4.9%. 

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

  • Car rental stock could stage a bounce off this trendline.   
  • Behind this electric vehicle stock's brand-new bull note. 
  • Plus, AVGO rises after earnings; PTON drops on a downgrade; and analysts chime in on surging ORCL. 

Futures Dec10

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1.6 million call contracts traded on Thursday, compared to 867,829 put contracts. The single-session equity put/call ratio rose to 0.53, and the 21-day moving average stayed at 0.48.
  2. Broadcom Inc (NASDAQ:AVGO) is up 6.4% before the bell, after the semiconductor name announced a strong fiscal fourth-quarter report, beating both top- and bottom-line estimates. To follow, no fewer than 13 analysts lifted their price targets, including Rosenblatt Securities to $750 from $600. 
  3. Credit Suisse downgraded Peloton Interactive Inc (NASDAQ:PTON) to "neutral" from "outperform," with a price-target cut to $50 from $112, citing a number of headwinds for the stock. At last glance, PTON is down 3.9% in electronic trading, and looking to open at an annual low after dipping below recent support at the $40 level. 
  4. Oracle Corporation (NYSE:ORCL) is surging 13.4% pre-market, after the tech company's upbeat fiscal second-quarter report and raised forecast. Plus, the board added another $10 billion to its share repurchase program. In response, Deutsche Bank upgraded the stock to "buy" from "hold," while no fewer than nine other analysts raised their price targets. 
  5. Today will bring the Michigan consumer sentiment index and the federal budget balance.

Markets Lower in Asia, Europe

Asian markets fell on Friday, as investors looked ahead to today’s much-watched inflation reading out the U.S. The Nikkei in Japan shed 1%, the Hang Seng in Hong Kong dropped 1.1%, the Shanghai Composite in China took a 0.2% haircut, and the South Korean Kospi fell 0.6%.

Over in Europe, markets are also taking a breather, as concerns over the impact of the Covid-19 omicron variant continue to loom. The London FTSE 100 was last seen down 0.02%, as investors pore over several bits of economic data out of the region, including the U.K.’s muted 0.1% economic growth in October, which fell just below expectations. Plus, British industrial output dropped 0.6% for October, coming in well below the 0.1% rise expected by economists. Elsewhere in the region, the German DAX is down 0.03% as traders keep an eye on automotive stock Daimler, which earlier lost over 16% on news of its publicly traded spin-off company, Daimler Truck. The stock was last seen up 3.4%. Rounding out the region, the French CAC 40 is 0.1% lower.



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