Investors will focus on inflation data Tuesday against a backdrop of the Federal Reserve considering the end of its Covid-19 pandemic-era programs.
Daniel Slim/AFP via Getty ImagesWall Street was poised to begin trading slightly higher Tuesday while global stocks were more mixed, as investors look ahead to key U.S. inflation data.
Futures for the Dow Jones Industrial Average pointed up around 10 points, set for a soft but positive open after the index rose 261 points on Monday to close at 34,869, reversing five consecutive days of losses. Futures for the S&P 500 indicated a similarly higher open with the Nasdaq set to decline slightly when trading begins in New York.
Overseas, the Chinese technology sector remained under pressure from the reported planned breakup of major payments app Alipay by regulators, with the Shanghai Composite down 1.4% and Hong Kong’s Hang Seng Index falling 1.2%. The pan-European Stoxx 600 was 0.1% lower, in line with the region’s major indexes.
Investor attention is squarely focused on inflation data coming later in the day, when markets will react to the U.S. consumer-price index for August, and core CPI, which excludes food and energy prices. Expectations are for CPI to rise 0.4% in August, down from 0.5% in July, with core CPI holding steady at 0.3%.
Inflation has been central to the narrative of markets in recent months—especially the debate over whether high year-over-year readings are permanent or transitory. Concerns over inflation come as central banks like the Federal Reserve consider slowing, or tapering, their pandemic-era program of monthly asset purchases, which add liquidity to markets.
“With markets back on inflation and tapering watch, the path of least resistance is higher prints from the data,” said Jeffrey Halley, an analyst at broker Oanda. A higher print would mean more-than-expected inflation.
“In that circumstance, I expect the U.S. Dollar to spike, U.S. yields to rise, and equities to probably have a bad day at the office,” Halley added. “But given the lack of momentum anywhere at the moment, I’m not sure it will last.”
In commodity markets, oil prices moved higher as a rally begun last week continued. International benchmark Brent crude futures were changing hands around $74 a barrel, while futures for the U.S. benchmark, West Texas Intermediate, neared $71 a barrel.
Here are ten stocks on the move Tuesday:
Luxury-goods stocks like LVMH, Burberry, Kering, and Richemont were all lower, as analysts noted concerns over rising Covid-19 cases in Asia. Consumers in China, Japan, and other countries in the region are critical to these companies’ sales and growth. LVMH was down 1.8%, Burberry 2.3%, Kering 3.9%, and Richemont 3.2%.
Alibaba stock fell 1.5% in Hong Kong, with the U.S.-listed shares poised similar declines, as analysts noted the Chinese tech sector continues to find itself under pressure driven by regulatory scrutiny. Tencent stock fell1%.
Evergrande shares plunged nearly 12% in Hong Kong, as the embattled, highly indebted Chinese property giant further detailed the extent of its financial problems.
Apple stock was up 0.2% in premarket trading ahead of the launch event for the newest iPhones.
Oracle shares were down 2.4% in the U.S. premarket. The software giant posted quarterly results late Monday in line or above guidance on most measures.
Coinbase stock was more than 1% higher in premarket trading. The stock fell more than 2% Monday after announcing a $1.5 billion bond sale.
Write to Jack Denton at jack.denton@dowjones.com
"stock" - Google News
September 14, 2021 at 04:01PM
https://ift.tt/2XfWwRT
Stock Market Today: Dow Wavers, LVMH and Luxury Stocks Decline, and Oil Rises - Barron's
"stock" - Google News
https://ift.tt/37YwtPr
https://ift.tt/3b37xGF
Bagikan Berita Ini
0 Response to "Stock Market Today: Dow Wavers, LVMH and Luxury Stocks Decline, and Oil Rises - Barron's"
Post a Comment