Stock Futures Rally as CPI Meets Expectations

Nasdaq-100 futures are sporting a triple-digit lead, at last check

Fernanda Horner

Digital Content Manager

Dec 11, 2024 at 9:17 AM

November's consumer price index (CPI) reading is injecting optimism into the market this morning, after the vaunted inflation metric rose 0.3% month over month, in line with expectations. Per CME's FedWatch, there is now an 87% chance the Federal Reserve will lower interest rates at the central bank's meeting next week.

At last check, futures on the Nasdaq-100 Index (NDX) are enjoying a triple-digit pop, while S&P 500 Index (SPX) and Dow Jones Industrial Average (DJIA) futures have pivoted higher as well. Investors are also monitoring Apple (AAPL), which today released its ChatGPT integration with virtual assistant Siri.

Continue reading for more on today's market, including:

Low historical volatility and SPX outperformance are a bad combination, says Senior Quantitative Analyst Rocky White.
Defense stock could bounce off bullish trendline.
Plus, private equity courts Walgreens; Macy's slashes forecast; GameStop's surprise profit.

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5 Things You Need to Know Today

The Cboe Options Exchange (CBOE) saw more than 1.8 million call contracts and 889,254 put contracts exchanged Tuesday. The single-session equity put/call ratio dropped to 0.48 and the 21-day moving average remained at 0.62.
Walgreens Boots Alliance Inc (NASDAQ:WBA) stock is down 2.8% ahead of the open, taking a breather from yesterday's 17.7% gain that was its best one-day percentage pop ever. This bull gap followed news that private equity firm Sycamore Partners may buy the pharmaceutical retailer. So far in 2024, WBA shed 60%.
Macy's Inc (NYSE:M) stock is down 10.3% in premarket trading, after the company ended the investigation into the employee that hid roughly $151 million worth of delivery expenses. The retail giant also reported a profit miss for the third quarter and lowered its full-year profit forecast. M is down 16.9% this year.
GameStop Corp (NYSE: GME) stock is up 3.3% before the bell, after the company announced a surprise profit for the third quarter, while revenue came in below estimates. GME is looking to extend its healthy 53.2% year-to-date lead.
There's a host of inflation data and earnings ahead.

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Asian Markets Mixed; All Eyes on South Korea, China Politics

Several economic headlines left Asian markets mixed today, including budget updates out of South Korea’s parliament. South Korea also released an adjusted unemployment reading of 2.7% for last month, while investors eye the continued investigation of President Yoon Suk Yeol. Monetary policy is expected to shift in China, as the country’s top leaders look to resolve economic challenges. For the session, Japan’s Nikkei closed flat, Hong Kong’s Hang Send shed 0.8%, China’s Shanghai Composite added 0.3%, and South Korea’s Kospi tacked on 1%.

Traders are keeping a close eye on U.S. inflation news today, as well as several bouts of retail stock updates across the pond. Some major clothing names making moves include Adidas and Zara parent Inditex, the latter shedding 6%. At last check, London’s FTSE 100 and France’s CAC 40 are both 0.3% higher, while Germany’s DAX is flat.

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