US index futures are flat this morning as investors digest yesterday’s NASDAQ 1.0% correction and today’s inflation numbers. Across the pond, the Dax is down 0.5%, while the FTSE is down 0.3%.
Inflation numbers in the US were mixed this morning. The headline US Consumer Price Index was up 3.7% from last year, up from 3.2% a month ago, and worse than the 3.6% street estimate. On the other hand, the Core CPI (excluding food and energy) reading of 4.3% was in line with expectations and down from 4.7% last month, a positive sign suggesting the stickier parts of inflation are improving. So far, the impact on stocks and treasury yields has been minimal, suggesting that expectations for next week’s Fed meeting have not changed.
WTI Crude Oil is up 0.4% this morning while Natural Gas is flat. Last night API announced a 1.1 mmbbl increase to US weekly inventories. DOE inventories, due at 10:30 am EDT, are widely expected to show a 1.9 mmbbl drawdown. Cryptocurrencies are consolidating yesterday’s gains with Bitcoin up 0.3%. In metals action, Silver is down 1.0%, while Gold and Copper are both down 0.1%.
In corporate news, American Airlines and Spirit Airlines are both down about 3.9% premarket after the two airlines announced that despite strong summer airline traffic and revenues, profits are expected to be less than previously thought due to rising costs, particularly fuel and pilot compensation. American cut its EPS guidance to $0.20-$0.30 from $0.95.
