Stock futures rose Tuesday as traders looked ahead to the discharge of more key U.S. inflation data.
Futures tied to the Dow Jones Industrial Average rose 206 points, or 0.6%. S&P 500 futures and Nasdaq-100 futures gained 1% and 1.5%, respectively.
Walmart shares jumped in premarket trading after the corporate beat Wall Street earnings and revenue estimates and boosted full-year guidance. Home Depot reported strong results too but kept guidance in place for the full-year. Its shares dipped barely.
The producer price index, which measures wholesale inflation, is about for release at 8:30 a.m. ET. The report comes after the most recent consumer price index data showed signs of inflationary pressure abating last month, thus sparking a pointy rally to finish trading last week.
“After last week’s CPI undershoot prompted an enormous equity rally & reversal within the Dollar, the critical topic for markets this week might be the Fed’s response,” wrote Huw Roberts, head of analytics at Quant Insight, in a Monday note.
Federal Reserve governors Christopher Waller and Lael Brainard spoke Sunday and Monday, respectively, concerning the potential future path of monetary policy. Waller said the market was overly optimistic and may brace for higher rates, while Brainard said the central bank could ease off rate increases.
Philadelphia Fed President Patrick Harker, Fed Governor Lisa Cook and Fed Vice Chair for Supervision Michael Barr are set to talk Tuesday.
Elsewhere, Taiwan Semiconductor, Louisiana-Pacific and Paramount jumped after regulatory filings showed that Warren Buffett’s Berkshire Hathaway had bought recent positions in the primary two, and raised its stake within the last.
Earnings season continues this week with retail reports from Goal, Lowe’s, Bath and Body Works, Macy’s, Kohl’s and Foot Locker on deck.