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Stock index futures pointed to a higher open Tuesday with investors still showing appetite for risk.
Nasdaq 100 futures (NDX:IND) +1.2%, S&P futures (SPX) +0.7% and Dow futures (INDU) +0.4% were higher.
The 10-year Treasury yield (US10Y) was down 5 basis points to 3.81% and the 2-year yield (US2Y) was down 5 basis points to 4.36%. The dollar index (DXY) was also lower.
“10yr US real yields had their second largest fall since the GFC on Thursday,” Deutsche Bank’s Jim Reid said. “Only the initial covid related fall in March 2020 beats it.”
Before the bell the latest figures on wholesale inflation arrive. The October PPI is expected to have risen 0.4% on the month, with the core PPI up 0.3%.
“Most companies sell to other companies, so this is the price most companies receive for their output,” UBS’ Paul Donovan said. “It continues to grow notably faster than companies’ overall wage bills. This highlights the role of profit margins in driving inflation.”
At the same time the New York Fed releases the Empire State Manufacturing Index for November. Economists are looking for the index to rise to -5.
Retail earnings are also in focus. Home Depot is lower despite beating on the top and bottom lines.