Futures Move Lower Tuesday, Will We See a Red to Green Move?

Morning Outlook

Futures are edging slightly lower in premarket trading Tuesday, following Asian markets lower as the US faces its looming debt ceiling. . The day’s economic news is in focus, with retail and manufacturing data scheduled for release. Equities will look to get back on track following yesterday’s result to start the week. The blue chips are looking for 5 in a row as futures for the Dow Jones Industrial Average fell 6 points to 13,427 and futures for the Standard & Poor’s 500 index eased 1.9 points to 1,462.40. Futures for the Nasdaq 100 index lost 2.25 points to 2,726.50.

Apple Inc. (AAPL) weighed on the broader market, sending Wall Street to a mixed finish in Monday trading. The Dow Jones Industrial Average rose 18.89 points, or 0.1%, to 13,507.32. It was the fourth consecutive day of gains for the blue chips. The S&P 500 Index declined 1.37 points, or less than 0.1%, at 1,470.68, with telecommunications hardest hit and consumer staples faring best among its 10 industry groups. The Nasdaq Composite Index lost 8.13 points, or 0.3%, to 3,117.50.

Currencies and Commodities

The dollar fell 0.99% at 88.5900 yen in the currency market. The euro is losing 0.24% at $1.3350 while the pound is depreciating 0.19% to $1.6048. Gold is up $11.50 to $1,680.90, while silver is up 0.48% at $31.27. Light, sweet crude for February is falling 7 cents to $94.08 per barrel on the NYMEX; a 0.07% decline.

Economic Calendar

8:30 AM
Producer Price Index: The PPI is a measure of the average price level for a fixed basket of capital and consumer goods received by producers. This is a great indicator of the future CPI as producers will eventually pass the costs onto the consumer. The consensus is for a 0.1% decline in the month of December. The range goes as low as -0.8% up to 0.4%. That figure is above the 0.8% decline in November. At the core level, the November PPI rose a modest 0.1 percent, while the core consensus is a 0.2 percent gain.

8:30 AM
Retail Sales: measure the total receipts at stores that sell durable and nondurable goods. Consumer spending accounts for two-thirds of GDP and is therefore a key element in economic growth. The consensus is for a 0.2% gain in the month of December, as retail sales in November rebounded 0.3%. This is a key figure as it includes the heart of the holiday shopping season. Retailers have been hard hit from what most would call a disappointing holiday shopping season. The consensus range falls as low as 0.0% and upwards of 0.8%.






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