CPI data in focus this week
The U.S. CPI data for July will be the big focus for markets this week following last Friday’s bumper jobs report.
The report showed that the U.S. economy added 528,000 jobs in July, surpassing economist expectations and quashing hopes that Fed policymakers may relent in their campaign to aggressively hike interest rates to tame red-hot inflation.
Unemployment rate dropped to 3.5% from 3.6%, returning to its pre-pandemic level.
The attention now turns to the CPI report which will be released on Wednesday. Economists expect the report to show inflation has peaked after hitting a 41-year high of 9.1% in June.
At 5:30 a.m. ET, futures for the Dow gained 46 points, or 0.14% to 32,803. S&P 500 futures rose 8.5 points, or 0.2% to 4,155.25 while the tech-dominated Nasdaq 100 futures added 47.5 points, or 0.36% to 13,276.25.
More earnings ahead
On the earnings front, several notable companies like Disney (DIS), Palantir (PLTR), Spirit Airlines (SAVE), and Take-Two (TTWO) will announce their quarterly results this week.
Analysts expect Disney to report earnings of $1 per share on revenue of $20.49 billion after the closing bell on Wednesday.
Other earnings to watch this week include Roblox (RBLX), Coinbase (COIN), Novavax (NVAX), BioNTech (BNTX), and Tyson Foods (TSN).
According to a FactSet report, nearly 87% of the S&P 500 companies have already published their financial results.
Signify Health spikes 18% on CVS acquisition report
Meanwhile, shares of home healthcare company Signify Health (SGFY) rocketed in the premarket trading session on Monday after The Wall Street Journal reported CVS Health (CVS) is interested in buying the company.
The Journal, citing people familiar with the matter, said CVS is interested in acquiring Signify as part of an expansion into home-health services.
According to the report, CVS is among the companies looking to submit initial bids this week.
Last week, the Journal reported that Signify was exploring “strategic alternatives” including a possible sale.
CVS is likely to face some competition from private equity firms and other managed-care providers, as per the report.
Signify stock was marked 18.27% higher to $23.50 a share in premarket hours.
