Dow Jones Today: Stock Futures Jump on Soft PPI Print; Oil Prices Dip After Run-Up
Stocks opened higher on Tuesday after data showed wholesale prices rose slower than expected last month and oil prices took a break from their recent surge.
The Dow Jones Industrial Average rose 0.4% in early trading, while the S&P 500 gained 0.5% and the Nasdaq Composite jumped 0.8%.
Tech stocks advanced after a shaky trading session yesterday when an eleventh-hour rally erased most of the day’s earlier losses. Nvidia (NVDA), which dragged down the Nasdaq yesterday after the White House laid out new AI chip export controls, rose in early trading. Tesla (TSLA) continued to rise after bucking the Magnificent Seven trend and advancing more than 2% yesterday.
Quantum computing stocks also inched higher after tumbling yesterday following skeptical comments by Meta Platforms CEO Mark Zuckerberg on a podcast released Friday.
The Producer Price Index, which tracks the prices producers receive for their goods and services, increased 0.2% last month, down from November and about half the increase economists were expecting. The soft report comes ahead of tomorrow’s consumer inflation data and could help assuage fears that the Federal Reserve’s mission to return inflation to its 2% target has stalled.
Treasury yields held steady, with the 10-year yield at 4.79%, near its highest level in more than a year. Yields have climbed more than 1 percentage point since the Fed began cutting interest rates in September.
Oil futures were slightly lower on Tuesday, with the U.S. benchmark trading at around $78. Oil prices have surged since the Biden Administration expanded sanctions against the Russian oil industry late last week.
Cryptocurrencies rebounded after slumping yesterday. Bitcoin (BTCUSD) traded above $97,000 and Ether (ETHUSD) rose above $3,200. Gold dipped to $2,670 an ounce.
BP Shares Fall on Forecast of Weaker Margins, Lower Production in Q4
17 minutes ago
BP (BP) stock fell in early trading Tuesday after the British oil giant said it expects to book impairments of between $1 billion and $2 billion in the fourth quarter.
The company said in a fourth-quarter trading update that the “non-cash, post-tax charges” were attributable across its units.
It also said that its upstream production is expected to be lower than that in the third quarter, when output was 2.4 million oil-equivalent barrels per day. The firm also said it expects “weaker” fourth-quarter margins on its refining business.
BP’s U.S.-listed shares fell about 1% at the open, but have risen about 5% this year amid higher oil prices.
Stock Futures Rise After Soft PPI Print
1 hr 6 min ago
Futures contracts connected to the Dow Jones Industrial Average rose 0.4% in premarket trading on Tuesday.
S&P 500 futures were also up 0.4%.
Nasdaq 100 futures jumped 0.6%.