(Reuters) – Futures for Wall Street’s main stock indexes rose on Tuesday ahead of the release of a producer price index that is expected to give some clues about the Federal Reserve’s progress in tackling inflation and the direction of interest rates.
After a tumultuous week that included mixed economic data and a Bank of Japan interest rate hike, stocks were little changed on Monday, with the Nasdaq posting only modest gains.
Macro data will be in the spotlight ahead of the market open, with the US Producer Price Index (PPI) expected to show that inflation eased to 2.3% year-on-year in July, while the monthly rate remained unchanged at 0.2%.
The all-important July Consumer Price Index (CPI) is due to be released on Wednesday.
Traders are split on whether the Fed will cut rates by 25 basis points or 50 basis points in September, and expect rates to end the year at 4.25% to 4.50%, according to CME’s FedWatch tool.
“Equities are still in recovery mode after last week’s sell-off and some are holding off on putting money into them until key US data is released this week. Pricing US economic growth remains a key issue,” said Chris Weston, head of research at Pepperstone.
Investors will also be focusing on comments from Atlanta Fed President Raphael Bostic about the outlook for the U.S. economy, scheduled for 1:15 p.m. ET.
Results from retailers Home Depot (NYSE:) will also be closely watched in gauging the health of the U.S. consumer ahead of the release of retail sales data on Thursday.
Wall Street’s fear index fell 18.87 points on Monday to 20.14 points.
As of 5:19 a.m. ET, the Dow E-mini was up 64 points (0.16%), the E-mini was up 97.75 points (0.52%) and the US S&P 500 E-mini was up 18.5 points (0.34%).
In premarket trading, chipmaker Nvidia (NASDAQ:) rose 1.5%, leading gains among large-cap and growth stocks.
On Holdings, which is backed by Roger Federer, reported second-quarter sales that beat analysts’ estimates on Tuesday thanks to strong customer demand for trendy products, but its shares fell about 9% in premarket trading after the company reaffirmed its full-year sales guidance.
Digital media company BuzzFeed’s shares rose 14.8% after the company said its second-quarter net loss narrowed to $6.6 million from $22.5 million in the same period last year.
