Stock Futures Rise as Investors Prepare for July Inflation Report

Stock Futures Rise as Investors Prepare for July Inflation Report
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European Stocks Mixed Ahead of Key US Inflation Data

European markets were mixed on Wednesday morning as global investors awaited the key US inflation figure.

the pan-european Stoxx 600 it was more or less flat in the late morning. Travel and leisure stocks rose 1.3%, while healthcare stocks fell 0.8%.

On the data front in Europe, German consumer price inflation at the end of July was 7.5% y/y and 0.9% m/m, official figures revealed on Wednesday, roughly in line with The expectations.

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

-Elliot Smith

China consumer prices hit a two-year high as pork prices recover

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

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

Additionally, pork prices saw their biggest monthly increase on record – up 25.6%. Nanhua Futures produce analyst Bian Shuyang said in a statement that farmers’ reluctance to sell, hoping for higher prices in the future, contributed to the rise in hog prices.

Bian added that live hog producers are now operating at a profit, indicating more supply to come. Two upcoming Chinese holidays in September and October will help support consumer demand for pork, he said.

Nevertheless, Wednesday inflation data continued to reflect lackluster demand in China’s economy.

The consumer price index rose 2.7% in July, below expectations for a 2.9% increase, according to analysts polled by Reuters. Furthermore, despite the summer holidays, the tourism price component increased by only 0.5% in July from a year earlier.

— Lee Ying Shan and Evelyn Cheng

Goldman, BoFA and Barclays name their top consumer stocks

Market watchers are keeping an eye on the July inflation report, due later today, for clues as to what the Federal Reserve will do next at its September meeting.

Before the publication of the report, CNBC Pro reviewed the Wall Street investigation to identify what investment banks are watching for signs of consumer weakness and their advice on how investors should position themselves in this environment.

Learn more about the consumer-related stocks that analysts at Goldman Sachs, Bank of America and Barclays love.

—Xavier Ong

Regional Fed presidents will speak tomorrow

In addition to Wednesday’s consumer price index report, markets will also take in Fedspeak from two regional bank presidents. They can give more insight into the central bank’s direction and the size of future rate hikes, especially at the September meeting.

Charles Evans, president of the Federal Reserve Bank of Chicago, will speak Wednesday at 11:00 a.m. ET at Drake University in Des Moines, Iowa.

Later in the day, Minneapolis Fed President Neel Kashkari will speak at a panel on stagflation at the Aspen Economic Strategy Group.

—Carmen Reinicke

Key CPI report may show inflation has cooled

July inflation report can show that prices have cooled – at least, that is what economists and investors hope.

Economists’ estimate for the July report is that the consumer price index rose just 0.2%, less than the 1.3% jump it jumped in June, according to Dow Jones. That would bring the year-over-year pace of consumer inflation in July to 8.7%, down from the 9.1% seen in June.

If the reading is lower than last month, it may show that we have passed the peak of inflation and are beginning to trend in the right direction. That will inform how aggressively the Federal Reserve will raise rates going forward.

—Carmen Reinicke

Coinbase, Roblox Plunge in After Hours Trading

Shares of Coinbase and Roblox are making some of the biggest moves after hours on Tuesday after reporting earnings that fell short of Wall Street expectations.

Coinbase fell more than 5% after earnings reports showing a larger-than-expected loss for the quarter, and the company missed revenue estimates.

Roblox plunged more than 16% after missing out on earnings and income. Additionally, the company also reported just 52.2 million average daily active users, down from the 54.1 million it reported in the previous quarter.

—Carmen Reinicke

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