The Market News Today: PPI Could Signal Future Inflation Trends

US PPI Preview: Key Figures to Watch

Today’s US Producer Price Index (PPI) release at 12:30 GMT could signal future inflation trends. Expectations are set for the headline year-over-year (y/y) PPI to range between 2.1% and 2.3%, with core PPI (excluding food and energy) anticipated between 2.3% and 2.5%. Monthly figures are expected to increase by 0.1% to 0.3%. Accurate forecasts are critical as deviations can significantly sway market sentiment, triggering adjustments in asset valuations, automated trading responses, and monetary policy expectations.

Home Depot Q1 Earnings: Analysts Forecast Decline

Home Depot is poised to release its Q1 earnings before Tuesday’s market open, with projections suggesting a downturn. Analysts, including Oppenheimer’s Brian Nagel, forecast a decline in earnings per share from $3.82 last year to $3.49, below the consensus of $3.60. Revenue is expected to drop 1.6% YoY to $36.7 billion. Nagel recommends a cautious stance amid sluggish consumer demand and challenging conditions in the home improvement sector, exacerbated by high rates and weak housing activity.

Stock Futures Stagnant as Inflation Reports Loom

U.S. stock futures showed little movement early Tuesday, with Wall Street eyeing upcoming inflation data. S&P 500 futures were unchanged, while Nasdaq 100 futures dipped slightly by 0.07%, and Dow futures edged down by 6 points. The market’s focus is on the Producer Price Index due later in the day, expected to show a 0.3% increase, and the Consumer Price Index, anticipated to rise by 0.4% month-over-month. These reports follow mixed performance in major indices, reflecting varied economic expectations and inflation concerns.

GameStop Rally Stuns Shorts, Walmart Restructures

Shares of GameStop and AMC leaped about 40% in Tuesday’s premarket trading, poised to build on Monday’s gains triggered by “Roaring Kitty” posting online for the first time in three years. This follows GameStop’s previous 74% surge, which led to an $838 million loss for short sellers, echoing the 2021 meme stock surge. Concurrently, Walmart is cutting corporate roles and centralizing operations, moving employees from Dallas, Atlanta, and Toronto to key locations like Bentonville and Hoboken to enhance efficiency and integrate more automation.

Oil Steady, Gold Rises Ahead of Key US Inflation Data

Oil prices remained stable, with investors focusing on U.S. inflation data and the latest OPEC report, awaiting updates on global demand and production. The market is also cautious about potential disruptions from wildfires near Canada’s oil sands. Meanwhile, gold prices ticked higher as investors anticipate this week’s inflation reports, which could influence the Federal Reserve’s rate decisions. Both commodities are reacting to economic indicators and geopolitical events, influencing investor strategies in the energy and precious metals markets.