Stock futures rise slightly as Wall Street awaits inflation data

Traders on the floor of the NYSE, August 1, 2022.

Source: NYSE

U.S. stock futures rose slightly on Tuesday morning after Wall Street weighed the outlook for chip stocks, looking ahead to more earnings results and inflation data that will determine the pace of future rate hikes.

Dow Jones Industrial Average futures rose 62 points, or 0.1[ads1]9%. S&P 500 and Nasdaq 100 futures rose 0.22% and 0.23%, respectively.

Novavax fell 32% in extended trading after cutting its full-year revenue guidance due to poor demand for its Covid vaccines.

Upstart fell 10% in extended trading after the consumer loan company reported second-quarter results that missed both profit and revenue expectations.

During Monday’s regular trading, the S&P 500 fell 0.12%. The Nasdaq Composite ticked down 0.10 percent. The Dow gained 29.07 points to close 0.09% higher.

Traders considered the implications of weaker-than-expected earnings from Nvidia on other semiconductor companies. They also considered whether the major averages will again challenge the June lows after the recent upswings; The S&P 500 is coming off its third consecutive positive week.

Stock picks and investment trends from CNBC Pro:

“I think a retest is likely and investors need to be cautious about buying in here,” Morgan Stanley Wealth Management’s Jim Lacamp said Monday on CNBC’s “Closing Bell.”

“You should use a rally like this to sell something you’re trying to get rid of — you know, you don’t want the cheese anymore, you want out of the trap.”

On the economic front, investors are waiting for the final reading of the July consumer price index, due on Wednesday, to find some clarity on the path of interest rate hikes by the Federal Reserve as it works to stem inflation, or at least slow it.

Investors are also waiting for another earnings release on Tuesday. Workhorse, Capri Holdings and Ralph Lauren are due to report quarterly results before the bell. Coinbase, Spirit Airlines, Roblox, Sweetgreen and EVgo will report after the market closes.

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