- Stock futures edge up ahead of retail sales data.
- S&P 500 index is headed toward its 30th record close of the year, bolstered by gains in tech stocks.
- Increase in in PPI over past 12 months rises to 6.6% from 6.2%.
- U.S. retail sales minus gas and autos fall 0.8% in May.
- U.S. retail sales minus gas and autos fall 0.8% in May.
(June 15) Producer prices climb 6.6% in May on annual basis, largest 12-month increase on record. Producer prices rose at their fastest annual clip in nearly 11 years in May as inflation continued to build in the U.S. economy, the Labor Department reported Tuesday.
On a monthly basis, the producer price index for final demand rose 0.8%, ahead of the Dow Jones estimate of 0.6%.
Stock Market
U.S. stock futures edged higher Tuesday ahead of fresh data that will indicate how much Americans spent in stores, at restaurants and online last month.
Futures tied to the S&P 500 ticked up 0.1%, indicating that the broad benchmark index is on track to notch its thirtieth record close of the year. Nasdaq-100 futures gained 0.2%, pointing togains in technology stocksafter the opening bell.
At 8:38 a.m. ET, Dow e-minis were up 18 points, or 0.05%, S&P 500 e-minis were up 5.5 points, or 0.13%, and Nasdaq 100 e-minis were up 24.75 points, or 0.18%.
Investors expect that stocks will climb through the rest of the year due to easy monetary policies. Many people are also betting thathigher inflation, due to the easing of economic restrictions and supply-chain bottlenecks, will be temporary. Signs that inflation will be elevated for a prolonged period or that theFederal Reserve may retrace its supportcould shake that confidence, money managers said.
Stocks making the biggest moves in the premarket: Vroom, Ping Identity, Sage Therapeutics & more
1) Vroom(VRM) – Vroom intends to offer $500 million in convertible senior notes due in 2026. The used-vehicle e-commerce platform provider plans to use the proceeds for a variety of corporate purposes as well as investing in or acquiring new technologies. Its shares slid 6.1% in premarket trading.
2) Ping Identity(PING) – Ping Identity announced a 6 million share common stock offering, in a sale of shares held by investment funds affiliated with Vista Equity Partners. The identity management solutions company will not receive any proceeds from the offering. The stock tumbled 4.2% in premarket action.
3) Sage Therapeutics(SAGE) – The drugmaker’s shares tanked 17.5% in premarket trading following the release of study results for Sage’s experimental depression drug. The treatment resulted in a statistically significant improvement in symptoms, although it could take up to six weeks to be effective and treatment may be required for months.
4) Boeing(BA) – The U.S. and European Union announced aresolution of the long-standing disputeover aircraft subsidies involving Boeing and European rival Airbus. The deal suspends World Trade Organization-authorized tariffs for five years, and U.S. Trade Representative Katherine Tai said it could serve as a model for resolving future disputes.
5) Exxon Mobil(XOM) – Bank of America reiterated a “buy” rating on the energy giant’s stock, predicting that Exxon Mobil would hike its dividend before the end of the year following cost-cutting measures and a rebound in oil prices.
6) Spirit Airlines(SAVE) – Spirit Airlines said in a Securities and Exchange Commission filing that leisure demand has continued to improve throughout the second quarter, and that it has seen operating yields strengthen as well. Citi upgraded the stock to “buy” from “neutral” following that update, and shares rallied 2.6% in the premarket.
7) Fastenal(FAST) – The maker of industrial and construction supplies was downgraded to “underweight” from “equal-weight” at Morgan Stanley, which notes a lull in customer acquisition as well as a stock that is already near an all-time high. The stock slid 2.2% in the premarket.
8) AstraZeneca(AZN) – AstraZeneca said an experimental monoclonal antibody treatment did not meet its main goal of preventing Covid-19 in patients who had been exposed to the virus. The company also said, however, that its Covid-19 vaccine is 92% effective against the so-called “Delta” variant of the virus.
9) Cracker Barrel(CBRL) – Cracker Barrel announced a $275 million private offering of convertible senior notes due in 2026. The restaurant chain will use the proceeds to pay debt and for general corporate purposes.
10) Novavax(NVAX) – Novavax announced positive results from its first study of its Covid-19 vaccine and a flu vaccine administered simultaneously. The study suggested that simultaneous vaccination may be a viable strategy.
11) Intuit(INTU) – The financial software company revealed in an SEC filing that its QuickBooks online service saw new customer acquisition grow by more than 25% year-over-year for the nine months ended April 30. Intuit shares had hit an all-time high in Monday’s trading.
12) Vimeo(VMEO) – Vimeo reported that total revenue in May rose 42% from a year ago, with the video services company also seeing average revenue per user up 18%.