Nasdaq, S&P 500 Futures Skyrocket After Tamer PPI Data That Confirms Slowing Inflation, Walmart's Beat-And-Raise Q3

Zinger Key Points
  • The see-sawing mood is here to stay as traders focus on each incoming economic evidence to assess its impact on interest rate.
  • The spotlight is likely to be on retail earnings, Fed speeches and economic data on producer prices and the manufacturing sector.
Nasdaq, S&P 500 Futures Skyrocket After Tamer PPI Data That Confirms Slowing Inflation, Walmart's Beat-And-Raise Q3

The index futures are solidly higher in premarket trading on Tuesday, as stocks strive to return to winning ways amid lingering hopes of a Fed pause.

On Monday, the major averages opened modestly lower but fought back to trade mostly above the unchanged line for the bulk of the session. A late-session selling wave dragged the indices sharply lower as they closed firmly in negative territory following two straight sessions of gains.

A majority of sectors retreated in the session, led by consumer discretionary, financial, real estate and utility stocks. Healthcare stocks ended little changed.

U.S. Indices' Performance On Monday
Index Performance (+/-)   Value
Nasdaq Composite -1.12%   11,196.22
S&P 500 Index -0.89%   3,957.25
Dow Industrials -0.63%   33,536.70

Here’s a peek into index futures trading:

U.S. Futures' Performance On Tuesday During Premarket Session
Index Performance (+/-)  
Nasdaq 100 Futures +2.80%  
S&P 500 Futures +1.95%  
Dow Futures +1.19%  
R2K Futures +1.14%  

In premarket trading on Tuesday, the SPDR S&P 500 ETF TrustSPY moved up 1.82% to $402.32 and the Invesco QQQ Trust QQQ rose 2.66% to $293, according to Benzinga Pro data.

On the economic front, the Labor Department's wholesale price inflation report for October showed that the headline producer price index rose 0.2% from the previous month compared to expectations for a 0.4% increase. The year-over-year rate cooled off to 8% from 8.3%. The data assumes importance because producer prices could be a sort of leading indicator for consumer prices.

The results of the New York Federal Reserve's Empire State manufacturing survey for November. showed the headline manufacturing index climbing 14 points to 4.5 in November, thereby moving into expansion territory. 

Federal Reserve Governor Lisa Cook will make a public appearance at 9 a.m. EST. An hour later, Fed Vice Chair for Supervision Michael Barr is expected to speak.

American Petroleum Institute’s weekly crude oil inventories report is due at 4:30 a.m. EST.

See also: Why The US Dollar, A Safe Haven For Worried Investors, Rebounded On Monday

Stocks In Focus:

  • Taiwan Semiconductor Manufacturing Company Limited TSM, Louisiana-Pacific Corp. LPX and Paramount Global PARA were all moving in premarket trading in reaction to billionaire investor Warren Buffett’s Berkshire Hathaway, Inc. (NYSE: BRK-A) (NYSE: BRK-Bpicking up new positions or adding to positions in the third quarter.
  • Azenta, Inc. AZTA shares soared after the company announced its quarterly results and board approval for a $1.5 billion stock buyback.
  • Chinese ecommerce retailers Alibaba Group Holding, Inc. BABA, JD.com, Inc. JD and Pinduoduo, Inc. PDD advanced strongly.
  • Walmart, Inc. WMT  shares climbed over 7% after the retail giant reported better-than-expected third-quarter results and raised the outlook for the year.
  • Home Depot, Inc. HD, Krispy Kreme, Inc. DNUT, Sea Limited SE and Tencent Music Entertainment Group TME are among the notable companies reporting before the market open.
  • Advanced Auto Parts, Inc. AAP is due to report its quarterly results after the market close.

Commodities, Other Global Equity Markets:

After sliding about 3.50% on Monday, crude oil futures were seen extending their slide and a barrel of WTI-grade crude oil fetched $84.64.

Most markets in the Asia-Pacific region showed tentativeness on Tuesday, as traders reacted to the negative close on Wall Street overnight. The Chinese, Hong Kong and Taiwanese stocks, however, rallied sharply.

Economic data out of China, including retail sales, industrial production and fixed asset investment, came in softer than expected, potentially triggering hopes for stimulatory measures from the government.

European stocks opened Tuesday’s session but have turned mixed in early trading.

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