Stock futures fell Tuesday morning, under pressure from rising oil prices. Meanwhile, Oracle shares dropped 10% in extended trading. Futures tied to the Dow Jones Industrial Average lost 76 points, or 0.22%. S&P 500 futures fell 0.3%, while Nasdaq 100 futures were off 0.33%. Oracle slid 10% in extended trading after posting revenue and revenue guidance that was weaker than expected. The software company reported $12.45 billion in revenue, lower than the $12.47 billion forecasted by analysts polled by LSEG, formerly known as Refinitiv. Other cloud competitors — including Amazon, Google-parent Alphabet and Microsoft — all slid in premarket trading. Oil prices also weighed on sentiment raising fears about sticky inflation and slowing global economic activity. U.S. crude prices touched the highest since November of last year, according to FactSet. Chevron shares were among the few premarket gainers. In the only economic data point of note, the NFIB Small Business Index nudged lower to 91.3, down 0.6 points and slightly below the Dow Jones estimate of 91.5. The moves following a winning day on Wall Street. The Nasdaq Composite led the three indexes with a gain of 1.1%, while the S&P 500 and Dow added about 0.7% and 0.3%, respectively. It was the second positive session for the S&P 500 and Nasdaq, and the third for the Dow. Much attention is focused on key inflation data due later in the week, with the consumer price index expected Wednesday and the producer price index slated for Thursday. Both data points come ahead of the Federal Reserve’s policy meeting next week. Current market pricing implies a 93% probability that the central bank will keep interest rates steady at the meeting, according to CME Group’s FedWatch Tool, which measures futures market pricing. The Wall Street Journal reported Sunday that there was a consensus within the Fed to not hike rates this month and less urgency for additional hikes later this year. “The menu of economic reports this week offers several tempting entrees for analysts to sink their teeth into,” said Pete Biebel, senior vice president at Benjamin F. Edwards. “If any of those reports come in much worse than expectations, it will likely cause a bit of market indigestion.” U.S. Treasury yields were little changed Tuesday as investors considered the outlook for the economy, especially regarding inflation, and how it may be linked to Federal Reserve monetary policy. The yield on the 10-year Treasury was flat at 4.288%. The 2-year Treasury yield was trading less than one basis point higher at 5.003%. Asia-Pacific markets mostly fell Tuesday, after Wall Street saw a tech rally led by Tesla and Qualcomm. Hong Kong’s Hang Seng index fell 0.29% in its final hour as shares of real estate developer Country Garden Holdings climbed as much as 8.7%. This comes after creditors voted to extend repayments on six onshore bonds late Monday. Mainland Chinese stocks were subdued, with the CSI 300 down 0.18% and ending the day at 3,760.6. In Australia, the S&P/ASX 200 closed 0.2% higher at 7,206.9, extending gains from Monday as the country’s business confidence survey for August strengthened to +2, up from +1 in July. South Korea’s Kospi slipped 0.79% to end at 2,536.58, and the Kosdaq finished 1.59% lower at 898.04, the lowest level in two weeks. Japan’s Nikkei 225 was 0.95% up, snapping a three day losing streak and closing at 32,776.37. The Topix also rebounded and gained 0.82% to end at 2,379.91, inching closer to a new 33-year high. Brent crude futures hovered just above $91 a barrel on Tuesday, as investors awaited a slew of macroeconomic data due later this week that could indicate whether Europe and the U.S. continue to hike interest rates. The international benchmark Brent contract added 64 cents to $91.28 a barrel at 7:55 ET, while U.S. West Texas Intermediate crude futures moved 80 cents higher to $88.09. Brent reached $90 a barrel last week for the first time in 10 months after Saudi Arabia and Russia announced they would extend voluntary supply cuts of a combined 1.3 million barrels per day, or bpd, until the end of the year. Gold prices slipped to a more than two-week low on Tuesday, weighed down by an uptick in the dollar ahead of widely watched U.S. inflation print that could provide more clarity on the Federal Reserve’s interest rate trajectory. Spot gold was down 0.5% at $1,911.70 per ounce by 1133 GMT, its lowest since Aug. 25. U.S. gold futures dipped 0.6% to $1,934.90. The dollar gained 0.3% against its rivals ahead of U.S. consumer price index (CPI) data due on Wednesday, making gold more expensive for other currency holders.
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