Stock Futures Bounce on Mild Inflation Data

Stock futures are firmly higher before the bell, as investors unpack this morning's inflation report. The producer price index (PPI) rose just 0.2% in December, which is half the 0.4% rise anticipated by analysts, and 3.3% year over year. Core wholesale inflation, which is the U.S. Federal Reserve's preferred gauge, rose 0.1% for the month and moved down to 3.3% from 3.5% for the last 12 months. According to the CME FedWatch tool, the Fed is around 80% likely to keep interest rates steady in March. 

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

• An SPX caution sign for options bulls, per Schaeffer's Senior V.P. of Research Todd Salamone. 
• Checking in with UnitedHealth Group stock before earnings. 
• Plus, SIG slides on disappointing forecast; TDOC partners with AMZN; and APLD pops on investor buzz. 

5 Things You Need to Know Today

1. The Cboe Options Exchange (CBOE) saw more than 1.7 million call contracts and over 1 million put contracts exchanged on Monday. The single-session equity put/call ratio fell to 0.60 and the 21-day moving average remained at 0.61.
2. Signet Jewelers Ltd (NYSE:SIG) is down 16.9% premarket, after the diamond retailer lowered its fourth-quarter revenue forecast due to slow holiday demand. On track for fresh 52-week lows, the equity is down 22.9% year over year. 
3. Shares of Teladoc Health Inc (NYSE:TDOC) are up 4.6% before the bell, after the company announced a partnership with Amazon (AMZN), in which some of its programs will now be available on the e-commerce giant. Since last January, the equity has shed 53.5%. 
4. Applied Digital Corp (NASDAQ:APLD) is up 21.2% in electronic trading, after news that Macquarie will invest up to $5 billion in the company's artificial intelligence (AI) data centers, taking 15% stake in its high-performance computing business. Year over year, APLD is up 3.7%. 
5. Bank earnings are coming up this week. 

Bond Yields Surge in Japan

Asian markets were mostly higher on Tuesday, with notable exceptions in Japan, where the Nikkei fell 1.8% as the country’s 40-year government bond yield surged to its highest level since 2007, driven by a global government bond selloff. Adding to the pressure, the Bank of Japan (BoJ) announced plans to discuss a potential interest rate hike at its policy meeting next week. Meanwhile, China’s Shanghai Composite jumped 2.5%, Hong Kong’s Hang Seng climbed 1.8%, and South Korea’s Kospi inched 0.3% higher.

European markets are also mostly higher this afternoon, with major bourses reacting to elevated bond yields in the region and corporate earnings reports. Investors remain cautious ahead of upcoming U.S. inflation data, which could weigh on market sentiment. At last glance, France’s CAC 40 and Germany’s DAX are up 0.9% and 0.8%, respectively, while London’s FTSE 100 sits just below breakeven.