Stock futures rise as investors prepare for July inflation report

Stock futures rise as investors prepare for July inflation report
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Market may be overbought before CPI

The recent market rally could put stocks at risk of pulling back from Wednesday’s CPI reading, according to BTIG technical strategist Jonathan Krinsky.

In a note to clients on Tuesday evening, the strategist said stocks made some irrational moves following the CPI reports this year, and positioning ahead of the report appears to be a key factor in how the market will react.

“At the end of the day, nobody knows what the number will be or how the market will react to that number, but from our point of view things are getting pretty overbought, which leaves room for the market to move lower after the number,” Krinsky said. .

— Jesse Pounds

Elon Musk sells Tesla shares

Musk’s plan to buy Twitter has worried policymakers around the world.

Joe Captain | Reuters

elon musk Sold approximately $6.88 billion shares of Tesla – despite saying earlier this year that “no further TSLA sales are planned”.

The Tesla CEO sold 7.92 million shares of the electric vehicle company, according to consecutive financial filings Tuesday night. SEC filings showed the transactions took place between August. 5th and 9th Tesla held its annual shareholder meeting in August. 4.

Earlier this year, Musk announced on social media that he is not planning to sell Tesla shares after April 28. The billionaire investor is currently in a legal battle with Twitter, which he agreed to buy for about $44 billion.

Shares of Tesla rose 2% in premarket trading Wednesday; Twitter increased 4%

—Sarah Min

European stocks mixed ahead of significant US inflation pressure

European markets were mixed Wednesday morning as global investors await significant US inflation pressure.

pan-European 600 it was roughly flat by morning. Travel and leisure stocks rose 1.3%, while healthcare stocks fell 0.8%.

On the data front in Europe, final consumer price inflation in Germany for July came in at 7.5% year-on-year and 0.9% monthly, roughly in line with expectations, according to official figures released Wednesday.

Earnings remain the main driver of individual share price movements in Europe. Ahold Delhaize, ABN AMRO, E.On, TUI Group, Metro, Deliveroo, Prudential and Aviva were among the main companies reporting before the bell on Wednesday.

– Elliot Smith

China’s consumer prices hit two-year high as pork prices bounce back

Customers purchasing pork from a food market in Shanghai, China. According to official data, prices for pork, a staple food item, in China increased by 20.2% in July 2022 compared to a year ago.

Qilai Shen | Bloomberg | Getty Pictures

China’s consumer price index in July hit a two-year high as pork prices rebounded, official data released on Wednesday.

Pork prices rose 20.2% in July from a year ago, the first increase since September 2020, according to data from Wind Information.

Additionally, pork prices rose 25.6%, posting their biggest increase in a month on record. Bian Shuyang, agricultural products analyst at Nanhua Futures, said in a statement that farmers’ reluctance to sell in hopes of getting higher prices in the future contributed to the increase in pork prices.

Bian added that live pig producers are now operating on a profit, noting that there is more supply. He said the two upcoming Chinese holidays in September and October will help support consumer demand for pork.

but, Wednesday inflation data It continued to reflect sluggish demand in the Chinese economy.

According to analysts polled by Reuters, the consumer price index rose 2.7% in July, beating expectations for a 2.9% increase. Moreover, despite the summer holidays, the tourism price component increased by only 0.5% in July compared to a year ago.

— Lee Ying Shan and Evelyn Cheng

Goldman, BoFA and Barclays announce largest consumer shares

Market watchers are looking to the July inflation report — scheduled for release later today — for clues on what the Federal Reserve will do next at its September meeting.

Before the report is published, CNBC Pro reviewed Wall Street research Identifying which investment banks are watching for signs of consumer weakness and their recommendations for how investors should position themselves in this environment.

Learn more about what analysts at Goldman Sachs, Bank of America, and Barclays like about consumer stocks.

— Zavier Ong

Regional Fed heads to speak tomorrow

In addition to Wednesday’s consumer price index report, markets will also digest Fedspeak from two regional bank heads. In particular, they can provide more insight into the course of the central bank and the extent of future rate hikes at the September meeting.

Charles Evans, chairman of the Federal Reserve Bank of Chicago, will be speaking at 11:00 ET on Wednesday at Drake University in Des Moines, Iowa.

Later, Minneapolis Fed Chairman Neel Kashkari will speak on a panel about stagflation at the Aspen Economic Strategy Group.

—Carmen Reinicke

Key CPI report could show inflation cooling

Shoppers inside a grocery store on Monday, May 2, 2022, in San Francisco, California, USA.

David Paul Morris | Bloomberg | Getty Pictures

July inflation report may indicate that prices are cooling – at least that’s what economists and investors are hoping for.

For the July report, economists estimate the consumer price index rose only 0.2%, less than the 1.3% it jumped in June, according to the Dow Jones. This will bring the year-over-year pace of consumer inflation in July to 8.7%, which is less than the 9.1% seen in June.

If the reading is lower than last month, it may indicate that we have passed peak inflation and are starting to trend in the right direction. This will inform how aggressively the Federal Reserve is raising rates going forward.

—Carmen Reinicke

Coinbase and Roblox plunge in trading hours later

Shares of Coinbase and Roblox are making some of the biggest moves after trading hours on Tuesday after reporting gains that didn’t meet Wall Street’s expectations.

Coinbase is down more than 5% earnings reporting It showed a larger-than-expected loss during the quarter and the company missed its revenue estimates.

Roblox drops more than 16% after loss on earnings and income. In addition, the company also reported only 52.2 million daily active users, out of the 54.1 million average daily active users it reported in the previous quarter.

—Carmen Reinicke

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