Wall St eyes positive open in lead up to data deluge
For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window
KeyCorp rises; Scotiabank to buy minority stake in co
Starbucks gains after report Starboard takes stake
July CPI on Wednesday, retail sales on Thursday
Futures up: S&P 500 0.36%, Nasdaq 0.4%, Dow 0.25%
Updated at 8:30 a.m. ET/1230 GMT
By Shubham Batra and Shashwat Chauhan
Aug 12 (Reuters) - Wall Street was set for a higher open on Monday as indexes add to their recovery from a hammering early last week, with investors gearing up for a deluge of data including U.S. consumer prices.
Both the S&P 500 .SPX and the Nasdaq Composite .IXIC recouped most of their losses by the end of last week, after the benchmark index suffered its biggest one-day percentage drop in nearly two years on fears of recession and the unraveling of currency carry trade positions involving the yen.
Investors are likely to be on edge until Wednesday's U.S. consumer price index (CPI) reading, which is expected to show headline inflation accelerated 0.2% in July on a monthly basis, but remain unchanged at 3% on a year-on-year basis.
Money markets are evenly split between a 50- and a 25-basis-point (bps) cut in U.S. interest rates in September, expecting a total easing of 100 bps by the end 2024, according to CME's FedWatch Tool.
Figures for July U.S. retail sales on Thursday are likely to show marginal growth, and investors expect that any weakness in the data could reignite fears of a consumer slowdown and a potential recession.
Earnings reports from Walmart WMT.N and Home Depot HD.N, due later this week, will also be crucial for clues on consumer spending in the world's largest economy.
"If inflationary data proves more sticky then that would lead to assumptions. The market will have to pull back some anticipation of a really aggressive Fed and that would increase volatility as well," said Keith Buchanan, senior portfolio manager at GLOBALT Investments.
Fed Governor Michelle Bowman softened her usually hawkish tone ever so slightly on Saturday, noting some further "welcome" progress on inflation in the last couple of monthseven as she said inflation remains "uncomfortably above" the central bank's 2% goal and subject to upside risks.
The CBOE Volatility Index VIX, Wall Street's fear gauge, was up slightly at 20.46 points, but much lower than the peak of 65.73 a week earlier.
At 08:30 a.m. ET, S&P 500 E-minis EScv1 were up 19.25 points, or 0.36%, Nasdaq 100 E-minis NQcv1 were up 73.75 points, or 0.4%, and the Dow E-minis 1YMcv1 were up 99 points, or 0.25%.
Most megacap and growth stocks were up in premarket trading, with NvidiaNVDA.O and Amazon.com AMZN.O among top gainers with a 1.2% and 0.8% increase, respectively.
Starbucks SBUX.O climbed 2.5% on reports that activist investor Starboard Value, which holds a stake in the coffee giant, wants the company to take steps to improve its stock price.
Robinhood Markets HOOD.O added 1.9% after Piper Sandler upgraded the stock to "overweight" from "neutral" and also raised its target price.
KeyCorp KEY.N jumped nearly 20% after Canada's Scotiabank BNS.TO bought a minority stake in the U.S. regional lender in an all-stock deal worth $2.8 billion.
Hawaiian Electric HE.N dropped 12.4% after the utility firm raised "going concern" doubts. The company disclosed that it did not have a financing plan in place for the $1.99 billion Maui wildfire settlement it reached earlier this month.
Reporting by Shubham Batra and Shashwat Chauhan in Bengaluru; Editing by Maju Samuel and Saumyadeb Chakrabarty
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
