S&P 500, Nasdaq Futures Start Week On High Note But Tuesday's Inflation Report Brings Caution — Twitter, Disney, Microstrategy And Other Stocks In Focus

Zinger Key Points
  • The past week’s gains have left the major averages at their highest level since late August.
  • Early indications are for a firmer start, although caution ahead of week’s key data could create indecision.
S&P 500, Nasdaq Futures Start Week On High Note But Tuesday's Inflation Report Brings Caution — Twitter, Disney, Microstrategy And Other Stocks In Focus

U.S. stocks look set to start the new trading session of the week on a firm note, latching onto the upward momentum seen since the middle of last week. Given the lack of any major catalyst for the session, the market participants are likely to trade with caution, especially ahead of Tuesday’s consumer price inflation report.

The major U.S. averages closed the week ended Sept. 9 on a markedly upbeat note, as bargain hunting lifted them from six-week lows. The advance seen since Wednesday helped the S&P 500 Index snap a 3-week losing streak.

U.S. Indices' Performance In Week Ended Sept. 9
Index Performance (+/-)   Value
Nasdaq Composite +4.14%   12,112.31
S&P 500 Index +3.65%   4,067.36
Dow Industrials +2.66%   32,151.71

Here’s a peek into index futures trading:

U.S. Futures' Performance On Monday During Premarket Session
Index Performance (+/-)  
Nasdaq 100 Futures +0.61%  
S&P 500 Futures +0.54%  
Dow Futures +0.41%  
R2K Futures +0.01%  

In premarket trading on Monday, the SPDR S&P 500 ETF Trust SPY was rising 0.49% to $408.61 and the Invesco QQQ TrustQQQ was moving up 0.51% to $308.65, according to Benzinga Pro data.

The economic calendar of the day is fairly empty, with just the results from a slew of Treasury auctions and Federal Reserve Bank of New York’s U.S. consumer price inflation expectations for September due for the day.

All eyes are likely to turn to Tuesday’s August consumer price inflation report which could have a say on the Federal Reserve’s September monetary policy decision due later this month.

See also: S&P 500 Snaps 3-Week Losing Streak As Investors Digest Powell's Latest Inflation Comments

In corporate news, a Reuters report suggested that the U.S. government could broaden the restrictions already announced for exports of chips and chip-making equipment to China as early as next month. Stocks in the space could come under pressure in reaction to the report.

Stocks In Focus

  • Walt Disney Company’s DIS CEO Bob Chapek announced over the weekend that the entertainment giant is not planning to spin off the ESPN network and instead has charted a growth plan for the unit.
  • MicroStrategy, Inc. MSTR disclosed in a filing with the SEC late Friday that it would sell shares worth up to $500 million. In a prospectus supplement filed, the company said it intends to use the net proceeds for buying more Bitcoin BTC/USD. The stock is advancing over 3% in premarket trading.
  • Ra Medical Systems, Inc. RMED is surging in the premarket session after it announced a deal to buy privately-held Catheter Precision.
  • Off-price retailer Tuesday Morning Corporation TUEM is seen retreating sharply after it announced over the weekend the clinching of a debt financing deal.
  • Twitter, Inc. TWTR shares could be in the spotlight after it filed with the SEC a letter sent to Elon Musk’s legal team that the basis of the third termination notice sent by the latter is invalid and wrongful. Twitter shareholders are set to vote on the deal on Tuesday.
  • Oracle Corporation ORCL is scheduled to release its quarterly results after the market close.

Commodities, Global Markets

The WTI crude oil futures are advancing over 1% to above $87.50-a-barrel ahead of the start of New York trading.

The major Asian markets that were open for trading rallied across the board, thanks to the positive cues from Wall Street last week. The Chinese, Hong Kong, and South Korean markets were closed for public holidays.

European stocks were also seen advancing strongly in early trading. In a major geopolitical development, Ukraine has retaken some of the ceded territories following a rapid weekend offensive.

Posted In: Inflation reportNasdaq futuresS&P 500 futuresNewsPenny StocksFuturesPreviewsEconomicsFederal ReservePre-Market OutlookMarketsTrading Ideas