The market outlook remains uncertain, as stock index futures suggest a slightly lower opening on Tuesday. Apple Inc. could provide support to the tech sector, but Oracle Corp.’s negative guidance is impacting sentiment. Traders are expected to be cautious ahead of the August consumer price inflation report, which is important for the Federal Reserve, who will be discussing monetary policy next week.
On Monday, major indices closed higher, driven by strength in the tech sector. The session started strong, with gains from heavyweights like Tesla, Inc. Although optimism lessened throughout the day, the indices remained above the break-even point.
The positive sentiment was partly due to the New York Fed’s inflation expectations, which showed a slight increase in the one-year reading to 3.6%. Measures of longer-term inflation indicated a slowdown.
The Nasdaq Composite and S&P 500 continued to see gains, while the Dow Industrials recorded its third consecutive session of gains.
Analyst Color:
Fund Strat made a bold prediction for gains this week, stating that they believe weakness in September was front-loaded. The firm’s Head of Research, Tom Lee, said that investors need to be tactically mindful in the current market. He added that their constructive stance on markets remains intact, based on their expectation of cooling inflation and the Federal Reserve shifting away from data dependency.
Futures Today:
In premarket trading on Tuesday, futures performance showed a slight decline for the Nasdaq 100, S&P 500, Dow, and R2K.
Upcoming Economic Data:
OPEC is set to release its monthly oil market report at 7 a.m. EDT.
The Energy Information Administration will release its short-term energy outlook report at 12 p.m. EDT.
The Treasury is scheduled to auction 10-year notes at 1 p.m. EDT.
Stocks In Focus:
Oracle saw a premarket decline of over 9% after its guidance missed expectations.
Apple shares are under scrutiny ahead of its “Wonderlust” iPhone launch event.
Tesla fell about 0.70% following its significant gain on Monday.
WestRock Company jumped 6.60% after announcing a deal to be acquired by European corrugated packaging company Smurfit Kappa.
Commodities, Bonds, Other Global Equity Markets:
Crude oil futures rose 0.81% in early European session on Tuesday.
The benchmark 10-year Treasury note slightly decreased to 4.278%.
The Asian market had a quiet performance on Tuesday, with traders waiting for U.S. inflation data. The Japanese, Indian, Australian, and Taiwanese markets advanced, while most other markets ended lower.
Major currencies gained ground against the dollar as the Bank of Japan and the Chinese central bank spoke positively about their currencies.
European stocks traded mixed by late trading on Tuesday, with the FTSE 100 advancing and the German and French markets declining slightly. The STOXX Euro 600 Index also edged down.
Stocks in the region rose solidly on Monday, led by material stocks.
Overall, there is still uncertainty in the market, but there are some positive factors to consider.
