Dow Futures Spiral After August's Red-Hot Inflation Reading

August's CPI reading rose 0.1%

Digital Content Manager
Sep 13, 2022 at 9:11 AM
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The highly anticipated consumer price index (CPI) reading for August was released this morning ahead of the bell, showing a 0.1% jump last month -- more than the 0.1% drop expected -- even as gas prices abated. Meanwhile, the core CPI rose 0.6% for the month, and 6.3% year-on-year. The red-hot reading comes just ahead of the U.S. Federal Reserve's Sept. 20-21 meeting, with the central bank's tone sure to be heavily influenced by today's CPI outcome.

Stock futures, which were optimistically higher ahead of the reading, quickly plummeted. At last check, futures on the Dow Jones Industrial Average (DJIA) were pointed more than 500 points lower, while S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) futures are both set to open deep in the red as well. 

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

  • How Tapestry stock could overcome long-term resistance.
  • Schaeffer's Senior V.P. of Research Todd Salamone has 2 SPY strikes to watch this expiration week.
  • Plus, ORCL's revenue surged; TWLO looks "well positioned" for growth; and RENT announces round of layoffs. 

futures sept 13 new

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1.23 million call contracts traded on Monday, and 702,310 put contracts. The single-session equity put/call ratio rose to to 0.57, while the 21-day moving average stayed at 0.66.
  2. Oracle Corporation (NYSE:ORCL) just entered the earnings confessional, reporting a sizeable jump in revenue for its latest quarter. This number came in line with analysts' expectations, though its reported profits missed the mark. Nevertheless, ORCL is up 2% ahead of the bell, as it digs into its 12.3% year-to-date deficit. 
  3. Twilio Inc (NYSE:TWLO) stock is up 1.4% in premarket trading, after KeyBanc Capital Markets called the firm "well positioned" in utilizing its management strategy to lift its gross margins. The analyst also resumed coverage on TWLO with an "overweight" rating, and a $96 price target. 
  4. The shares of Rent the Runway Inc (NASDAQ:RENT) have plummeted more than 26.6% in premarket trading, following the company's announcement that it will be laying off 24% of its corporate staff, and cutting up to $27 million in fixed costs. RENT managed to climb over 10% during yesterday's session, though the stock lost steam at the 160-day moving average. 
  5. Slated for release today are the National Federation of Independent Business' (NFIB) small-business index, and a federal budget update.

OV Buzz Chart Sept 13

U.K. Jobs Data Injects Optimism Into Markets

Asian markets were mostly higher on Tuesday, as investors awaited the U.S.’ August CPI report. Leading the gainers was the South Korean Kospi, which added 2.7%, thanks in part to outsized gains from Samsung Electronics and SK Hynix. Meanwhile, Japan’s Nikkei rose 0.3%, while China’s Shanghai Composite settled slightly below breakeven with a 0.05% loss. Elsewhere, Hong Kong’s Hang Seng shed 0.2%.

European stocks were last seen trading in positive territory as well. In other news, U.K. unemployment hit its lowest level since 1974 in July, while the economic inactivity rate reached a five-year high. At last check, the German DAX was up 0.9%, France’s CAC 40 is 0.8% higher, and London’s FTSE 100 is eyeing a 0.4% gain.

 

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