US index futures are rebounding this morning, clawing back some of yesterday’s losses as investor focus turns toward tonight’s expected SpaceX IPO pricing and tomorrow morning’s trading debut. Even a 9.4% premarket decline in Oracle following its earnings report has not been enough to dampen the broader improvement in sentiment.
The European Central Bank became the second major central bank to raise interest rates this year, although the market impact has been limited as the move was widely expected. Today’s US inflation data was mixed, with headline producer prices coming in hotter than expected, while core producer prices were better than anticipated, suggesting that, for the moment, price pressures may be concentrated in the more volatile food and energy components.
US producer prices increased 6.5%, above the Street estimate of 6.4% and the previous reading of 5.7%. Core producer prices rose 4.9%, below the Street estimate of 5.4%. Oracle reported earnings of $2.11 per share, ahead of the Street estimate of $1.96, but the stock is trading lower in premarket action.
NASDAQ futures are up 0.7%, while Dow futures are up 0.5%. In Asia, the Nikkei gained 0.1%, while the Hang Seng declined 0.6%. In Europe, the DAX is down 0.2%, while the FTSE is up 0.6%.
In commodities, Crude Oil is up 0.8%, Gasoline is up 0.5%, Gold is down 1.0%, Copper is down 0.6%, and Silver is down 2.5%.
In currencies and rates, the US 10-year Treasury note yield is holding above 4.50%, while the US 30-year Treasury note yield remains above 5.00%. The US Dollar is climbing broadly today, with the Euro down 0.1% and the Loonie down 0.3%.
Looking ahead, SpaceX is expected to complete its IPO at a price of $135.00 per share on Thursday evening and begin trading on Friday morning.