Morning Markets

September S&P 500 futures (ESU22) are moderately up +0.03% this morning after three major US benchmark indices bounced back during the regular session as an on-target inflation report mainly stopped the flow of Tuesday's sell-off. Three major U.S. stock indexes were primarily driven by gains in the Oil & Gas, Utilities, and Consumer Services sectors.

The Labor Department's producer prices (PPI) index dropped by -0.1% m/m and met consensus estimates, giving reassurance that inflation is indeed on a descending trajectory.

"The inflation debate continues, and [Tuesday] was a harsh reminder that this is a tough battle, and the Fed needs to remain aggressive to put a lid on the widespread inflationary prices we’re seeing," said Ryan Detrick, a chief market strategist at Carson Group in Omaha, Nebraska. U.S. rate futures have priced in a 70% chance of a 75 basis point rate increase and a 30% chance of a super-sized 100-basis-point hike at next week's policy meeting.

Today, all eyes are focused on the U.S. retail sales and core retail sales data in a couple of hours. Economists, on average, forecast that August retail sales will gain +0.2% m/m, while core retail sales number is expected to grow by +0.1% m/m.

Also, investors are likely to focus on the U.S. Initial Jobless Claims data, which was at 222K last week. Economists foresee the new figure to be 226K.

U.S. Philadelphia Fed Manufacturing Index data will be reported today as well. Economists forecast this figure to come in at +2.8, compared to the previous value of +6.2.

In the bond markets, United States 10-Year rates are at 3.447%, up 1.03%.

The Euro Stoxx 50 is down -0.08%this morning as the sentiment remains fragile. European stocks have received a positive handover from Wall Street and Asia after major indexes recorded modest gains. However, sentiment remains unstable as investors worry about the impact of tightening monetary policy on economic growth.

The French Consumer Price Index (CPI) and Harmonised Index of Consumer Prices (HICP) data were released today. 

The French August CPI rose +0.5% m/m and +5.9% y/y, stronger than expectations of +0.4% m/m and +5.8% y/y.

France's August HICP rose +0.5% m/m and +6.6% y/y, stronger than expectations of +0.4% m/m and +6.5% y/y.

Asian stock markets today closed mixed. China’s Shanghai Composite Index (SHCOMP) closed down -1.16%, and Japan’s Nikkei 225 Stock Index (NIK) closed up +0.21%.

China’s Shanghai Composite today closed down after the People’s Bank of China paused its monetary easing efforts and left its benchmark lending rate unchanged amid increased pressure from an aggressive U.S. Federal Reserve policy. The move was likely caused by further depreciation in the yuan, which swooped to two-year lows in recent weeks.

At the same time, Japan’s Nikkei Stock Index closed higher today, as the data showed a record trade deficit for August. The index's upward momentum was fueled by gains in the Transport, Mining, and Banking sectors. The Nikkei Volatility, which takes into account the implied volatility of Nikkei 225 options, closed up 13.06% to 20.69.

The Japanese August Trade Balance has been reported at -2,817.3B, weaker than an economic forecast of -2,398.2B.

The Japanese Tertiary Industry Activity Index stood at -0.6% m/m, weaker than expectations of -0.1%.

Pre-Market U.S. Stock Movers

APA Corporation (APA) climbed over +3% in pre-market trading after the company increased a quarterly dividend by 100% to $0.25 per share. Also, the board of directors approved 40 million shares of additional share repurchase authorization. 

Rhythm Pharmaceuticals Inc (RYTM) plunged over -11% in pre-market trading after the company announced a proposed public offering of $100 million shares of its common stock.

Ironnet Inc (IRNT) fell over -27% in pre-market trading after Jefferies downgraded the stock to underperform from hold.

Akero Therapeutics (AKRO) dropped about -2% in pre-market trading after the firm announced an upsized underwritten public offering of 7,692,308 shares of its common stock at a public offering price of $26.00.

Rivian Automotive Inc (RIVN) rose about +1% in pre-market trading after Needham initiated coverage with a neutral rating.

Nextera Energy Inc (NEE) dropped over -3% in pre-market trading after the company announced its intention to sell $2.0 billion of equity units.

Fisker Inc (FSR) climbed over +1% in pre-market trading after Needham initiated coverage with a buy rating and a $12 price target.

Palo Alto Networks Inc (PANW) rose about +1% in pre-market trading after Jefferies initiated coverage with a buy rating.

Telefonaktiebolaget LM Ericsson B ADR (ERIC) fell about -3% in pre-market trading after Credit Suisse downgraded the stock to underperform from outperform.

Today’s U.S. Earnings Spotlight: Thursday - September 15th

Adobe (ADBE), Aspen (AZPN), Sprott Physical Gold and Silver Trust (CEF), Bowlero (BOWL), MYT Netherlands (MYTE), Cuisine Solutions (CUSI), Mesabi Trust (MSB), Niocorp Developments (NIOBF), Innate Pharma (IPHA), Anixa Biosciences (ANIX), Bridgford (BRID), Aurora Mobile (JG), Champions Oncology (CSBR), Park City Group (PCYG), Fonar (FONR), Rezolute (RZLT), Renalytix AI Nas (RNLX), PharmaCyte Biotech (PMCB), S&W Seed (SANW), Espey Mfg&Electronics (ESP), US Gold (USAU), Applied Genetic (AGTC), Aytu BioScience (AYTU), Anpac Bio Med (ANPC), Polydex Pharma (POLXF), Christopher Banks (CBKCQ), Hyperdynamics (HDYNQ), Bon-Ton Stores (BONTQ), Signature Eyewear (SEYE).