The S&P 500 closed higher for the first time in three sessions after July's consumer price index matched expectations, and traders pared bets on a rate hike in September. Futures pointed higher again Thursday ahead of the producer price report, with one economist saying the odds favor a rate increase in October or December.
S&P 500 futures added 0.14% early Thursday as traders awaited a fresh reading on wholesale inflation, a day after tame consumer price data lifted the benchmark.
Cooling inflation lifts the S&P 500
The consumer price index for July rose 0.1% month over month, matching economists' expectations. The tame reading gave the S&P 500 a boost, and the benchmark closed higher for the first time in three sessions. As a result, traders pared expectations for a rate hike in September.
José Torres, senior economist at Interactive Brokers, said markets favor a rate move in October or December: "the odds favor a rate increase in either October or December"
Producer price data due at 8:30 a.m.
The July producer price index, which gauges what wholesalers pay for raw goods and materials, is set for release Thursday at 8:30 a.m. ET. Economists polled by Dow Jones expect an increase of 0.2% from the prior month.
Investors will get further data Friday in the form of July retail sales. Economists expect growth of just 0.1% last month, according to Dow Jones.
Elsewhere in premarket trading, Dow Jones Industrial Average futures added 99 points, or 0.18%, while Nasdaq-100 futures held just above the flatline.
Source: CNBC
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