Stock Futures Muted as Investors Unpack PPI Reading

August's PPI met Wall Street's expectations of a 0.1% dip

Digital Content Manager
Sep 14, 2022 at 9:11 AM
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Stock futures are muted this morning, after the major benchmarks yesterday recorded their worst day since 2020 on the heels of hotter-than-anticipated inflation data. Futures on the Dow Jones Industrial Average (DJIA) were last seen slightly above breakeven, while S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) futures are sporting modest gains as well. In other news, the producer price index (PPI) for August dipped 0.1% as inflation fears swirled, which was in line with Wall Street's expectations, while the core PPI rose 0.2%.

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

  • What this rare sentiment survey reading tells us about the S&P 500.
  • Solar stock looks ready to return multi-month highs.
  • Plus, EV stock upgraded; Starbucks hikes three-year guidance; and ceiling may be looming for Bristol-Myers Squibb stock.

OV Stats 0914

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1.31 million call contracts traded on Tuesday, and 961,099 put contracts. The single-session equity put/call ratio rose to to 0.73, while the 21-day moving average stayed at 0.66.
  2. Electric vehicle (EV) maker Nikola Corp (NASDAQ:NKLA) is up 1.4% ahead of the bell, after BTIG upgraded the equity to "buy" from "neutral." The analyst in question noted increasing wind and solar power generation has the potential to boost green hydrogen demand. A floor at the $5 level has been supporting the shares, which carry a 49% year-to-date deficit.
  3. Starbucks Corporation (NASDAQ:SBUX) yesterday hiked its long-term forecast, adding it expects to see 15% to 20% annual growth for both earnings and revenue over the next three years, amid a business reinvention. The equity was last seen up 1.2% in premarket trading, and earned three-price target hikes earlier, including one from J.P. Morgan Securities to $100 from $96. SBUX has gained 15% quarter-to-date.
  4. The shares of Bristol-Myers Squibb Co (NYSE:BMY) are down 1.2% before the open, after Berenberg downgraded the equity to "hold" from "buy," and slashed its price target to $76 from $82. The brokerage firm noted the pharmaceutical stock's upside potential is waning, and that it could soon hit a ceiling. Nevertheless, the security is still up 13.9% in 2022.
  5. A slew of economic indicators are due out tomorrow.

OV Buzz Chart Sept 14

European, Asian Markets Respond to Stateside Selloff

Asian markets tumbled accordingly, taking cues from the seismic selloff in the states. Japan’s Nikkei shed 2.8%, as the yen dipped to levels not seen since 1998. The currency bottomed and leveled out though, after the Bank of Japan performed a rate check. Hong Kong’s Hang Seng gave back 2.3% amid a flailing tech sector. Rounding out the region, South Korea’s Kospi lost 1.6%, while China’s Shanghai Composite finished 0.8% lower.

European bourses are similarity responding to the global selloff. The growing energy crisis has prompted the European Union (EU) to form a “deep and comprehensive reform” of the electricity market. London’s FTSE is 1.7% lower at last check, after inflation for August slowed thanks to falling fuel prices. The German DAX is off by 1.3%, with KION Group down 27% weighing on the index. The French CAC 40 is 1% lower.

 

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