US pre-open: Futures higher ahead of December PPI reading

(Sharecast News) - Wall Street futures were in the green ahead of the bell on Tuesday as major indices look to extend gains recorded in the previous session. As of 1255 GMT, Dow Jones futures were up 0.39%, while S&P 500 and Nasdaq-100 futures had the indices opening 0.54% and 0.72% firmer, respectively.

The Dow closed 358.67 points higher on Monday as market participants prepared for the release of key inflation data later in the week.

Trade Nation's David Morrison said: "US stock index futures were sharply higher this morning, continuing a recovery which began early yesterday, thanks to a modest pullback in bond yields. All the US majors rallied off the lows seen first thing on Monday, and went on to close in the black yesterday evening. The exception was the tech-heavy Nasdaq which ran out of puff before the close."

On the macro front for Tuesday, the National Federation of Independent Business' optimism index surged to 105.1 in December, the highest reading since October 2018, up from a print of 101.7 in November due to an improved economic outlook following the US federal election.

NFIB economist Bill Dunkelberg said: "Small business owners feel more certain and hopeful about the economic agenda of the new administration. Expectations for economic growth, lower inflation, and positive business conditions have increased in anticipation of pro-business policies and legislation in the new year".

Still to come, December's producer price index will likely be the session's primary focus, scheduled for release at 1330 GMT, with economists expecting to see the month-on-month increase slow from 0.4% to 0.3%.

In the corporate space, JPMorgan Chase, Citigroup, Goldman Sachs and Wells Fargo will kick off Q4 earnings season tomorrow.

Reporting by Iain Gilbert at Sharecast.com