U.S. stock futures were little changed Tuesday night, as traders looked ahead to an important inflation report that will likely determine the near-term direction for interest rates.
Dow Jones Industrial Averagefutures rose by 26 points, or 0.05%.S&P 500 futuresandNasdaq 100 futuresclimbed 0.1% and 0.09%, respectively.
Super Micro Computershares rallied more than 6% after the data center infrastructure company issued rosy guidance for first quarter earnings and revenue.CoreWeaveshares surged 14% after second quarter adjusted operating income margin of 5% exceeded expectations.
Those moves come ahead of the latest inflation data that investors are hoping will be asencouraging as the last. The July consumer price index that's due out at 8:30 a.m. ET on Wednesday isexpected to show only a slight increasein monthly inflation, of 0.1% in the headline number and 0.2% for the core reading, according to economists polled by Dow Jones. However, the estimated 12-month rates of 3.4% and 2.5%, respectively, remain above the Fed's 2% target.
A surprisingly hot inflation report will likely alarm investors who expect it will shape what the Federal Reserve does at its September meeting, as policymakers take a reprieve in August. The central bank has been laser focused on the impact higher pricing pressures are having on the U.S. consumer, with three dissenters at the last meeting voting to raise rates. And, those concerns have yet to abate, with U.S.oil prices pushing above $83 a barrelthis week, as hopes of a reopening of the Strait of Hormuz dwindle.
"All the Fed seems to be focused on is inflation, which means that tomorrow's report is very important, especially because right now the odds for a September hike are 50-50," Liz Thomas, head of investment strategy at at SoFi, told CNBC's "Closing Bell" on Tuesday. "Tomorrow pushes that in one direction or the other, and that gets baked in."
The bond market will also be carefully watched in the aftermath of the report, especially with long- and short-dated issues — the10-year Treasuryyield hovering around 4.7% and the2-year yieldaround 4.2% — already reflecting fears of a more restrictive interest rate regime.
Wednesday's inflation report won't be the last hurdle the stock market will have to get past this week. The July producer price index that's due out Thursday will have to prove theprior month's softer reportcan be repeated.
Stocks making the biggest moves after hours
Check out the companies making headlines after hours.
Super Micro Computer— The data center infrastructure stock rallied more than 6% after Super Micro Computer issued rosy guidance for first quarter earnings and revenue, in addition to exceeding fourth quarter estimates. The company expects adjusted earnings in the range of $1.01 to $1.10 per share, far above the LSEG consensus estimate of 76 cents. Revenue guidance in the range of $14.5 billion to $15.5 billion also topped the anticipated $11.68 billion.
CoreWeave— The artificial intelligence cloud company saw shares gain about 14%. Second quarter adjusted operating income margin came in at 5% compared to the StreetAccount consensus estimate of 2.7%.Revenue of $2.58 billionwas up 112% from the year-ago period, and it came in ahead of the $2.56 billion expected, per the LSEG consensus estimate.
Stock futures open little changed
Stock futures opened little changed Tuesday night.
Dow Jones Industrial Average futures rose by 25 points, or 0.05%. S&P 500 futures and Nasdaq 100 futures climbed 0.09% and 0.08%, respectively.
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